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Statement of
Karen J. Hedlund
Partner, Nossaman, Guthner, Knox & Elliott, LLP
Before the
Subcommittee on Highways, Transit, and Pipelines
Committee on Transportation and Infrastructure
U.S. House of Representatives
Hearing on "Understanding Contemporary Public Private Highway Transactions: The
Future of Infrastructure Finance?"
May 24, 2006
Good afternoon, Mr. Chairman, Ranking Member DeFazio and Members of the Committee. My name is Karen Hedlund and I am a partner of the law firm of Nossaman, Guthner, Knox & Elliott, LLP. It is my pleasure to speak to you today about how State Departments of Transportation (DOTs) and local transportation agencies are implementing their public-private partnership (PPP) programs. My firm has had the privilege of advising over a dozen States on PPP procurements, including Colorado, Delaware, Florida, Georgia, Indiana, Minnesota, North Carolina, Oregon, Texas, Utah, Virginia and Washington. This morning I will address how various States have crafted PPP legislation, how they go about procuring private investment in their transportation projects, some of the "lessons learned" from their endeavors and current trends. I will conclude with a note on the support and oversight provided to State and local agencies by the federal government.
Long-term tollway leases, such as the recent transaction for the Chicago Skyway and the Indiana Tollroad, have garnered most of the headlines. However, it should be recognized that most of the PPP activity in the States actually has revolved around the development of new transportation facilities. I will focus my remarks on these transactions.