[COVER LETTER]

AECOM CONSULT, AN AFFILIATE OF DMJM HARRIS
3101 WILSON BOULEVARD, SUITE 400
ARLINGTON, VIRGINIA 22201
T 703.682.5100 F 703-682-5001 WWW.DMJMHARRIS.COM

July 7, 2007

Mr. James W. March
Team Leader - Industry and Economic Analysis Team
Office of Policy and Governmental Affairs
Federal Highway Administration (FHWA) - HPTS
1200 New Jersey Avenue, SE
Washington, DC 20590

Case Studies of Public-Private Partnerships for Transportation Projects around the World - Task Order 05-002

Dear Mr. March,

AECOM Consult, in association with DMJM Harris, FaberMaunsell, Maunsell of Australia, the National Council of Public-Private Partnerships, and the Ybarra Group, is pleased to provide the final report of Case Studies of Public-Private Partnerships for Transportation Projects around the World.

This report provides a fundamental understanding of PPP approaches and their potential consequences on project time, cost, and quality, and presents the results of actual PPP projects performed in several countries around the world through a series of case studies and cameo descriptions. The projects selected for case study vary in type and maturity, and cover the range of private sector involvement associated with different PPP approaches used in selected countries. Each case study explores the reasons why the sponsoring agency elected to pursue the project as a PPP, the structure of the partnership, the nature of project financial and delivery responsibilities, and the issues and impediments that confronted members of the PPP team and how they addressed them to move the project forward. The case studies also present the results and lessons learned from using the PPP approach applied to the each project. These case studies are intended to inform the reader about challenges and opportunities encountered by international practitioners of PPP approaches to project financing and delivery.

This report focuses on PPP applications to transportation projects in England, Australia, New Zealand, Hong Kong, India, Israel, Denmark, Sweden, and Argentina. The report also presents an overview of the PPP programs in England and Australia, including brief cameo descriptions of PPP projects in Australia and New Zealand that demonstrate the variety of project types involved, PPP approaches applied, and results achieved. Most of the projects profiled in this report were successfully delivered. However several faced major challenges for both the public agency sponsors and their private sector partners. These projects demonstrate that private sector involvement does not in itself guarantee project success and that multiple factors often beyond the control of project partners can significantly impact project results.

A separate chapter provides a summary discussion of developments in a number of developed and developing countries seeking to use PPP approaches to expedite their transportation infrastructure programs, drawing on the long experience of Western European nations such as England, France, Spain, and Italy.

A companion report focuses on PPP applications in the United States, which is a more recent entrant to the PPP marketplace but making great strides to exploit the opportunities offered by PPP approaches to project finance and delivery. A third report provides a guidebook on developing and implementing a transportation project as a PPP and its aimed at both the early practitioners of PPP projects as well as those agencies just beginning to consider the possibility instituting some form of PPP arrangement for a particular project currently stalled for lack of available resources.

We appreciate the opportunity to perform this study of international PPP transportation projects. We acknowledge the support and assistance provided to the study team by members of the FHWA Office of Policy and Governmental Affairs, FHWA Office of the Administrator - PPP Unit, and FHWA Resource Center in San Francisco. We are especially grateful for your guidance and suggestions throughout this study effort.

Very truly yours,

Daniel L. Dornan, P.E.
Senior Consulting Manager
AECOM Consult, Inc.

An AECOM Company