Although we made no recommendations, we provided copies of this report to the FHWA Administrator on May 24, 2011. On July 21, 2011, we received FHWA's response which is included in its entirety as an appendix to this report. In its response, FHWA emphasized the need to consider factors outside of our analysis, especially the valuation of risk, in the PPP decision making process. However, FHWA stated that based on a full consideration of risk valuation, innovative financing options, and the potential to leverage public investment, PPPs offer viable options for the advancement of transportation solutions. We agree. As we noted in our report, our analyses did not consider the impacts of other factors, including risk sharing arrangements, which can be significant. Instead, our report clarifies and provides guidance on a number of factors that enter into a financial analysis of PPPs which we recognize constitutes only a portion of the comprehensive assessment required for an effective PPP decision.
If you have any questions concerning this report, please call me at (202) 366-9970, or Betty Krier, Program Director, at (202) 366-1422.