The research team worked with the NCPPP staff to design questions that address the purpose and objective of the project. Although traffic congestion challenges for the Capital Beltway pollinate across the Virginia/Maryland line of demarcation, the management of this issue and administration of respective state highway programs are vastly different. When this project began, negotiations on the final terms of a $1.7 billion, 80-year public-private partnership with Fluor-Transurban were nearing completion in Virginia.2 Differing from historically successful PPP efforts, this new partnership represents Virginia's most comprehensive and in-depth PPP agreement to-date. The project includes plans for Fluor-Transurban to design, construct, operate and maintain the Capital Beltway HOT lanes. The research team decided it would be beneficial to examine the inter-workings of this agreement and predict its long-term success using the NCPPP's six criteria for a successful public-private partnership.2 Across the Potomac River, the team took an in-depth view of where Maryland stands on Beltway improvements and the challenges they face in building additional highway lanes. Since Maryland's plans to improve its portion of the highway are still in the formative stages of development and specific intentions have not yet been declared, the team examined whether or not the requisite conditions exist to duplicate Virginia's PPP efforts. This report addresses the following research questions:
1. To what extent and how have Virginia and Fluor-Transurban satisfied NCPPP's six criteria for a successful public-private partnership with their effort to add capacity to the Capital Beltway? What areas do they need to improve on, if any?
2. What are the key challenges and obstacles Maryland faces for building additional highway lanes on their portion of the Capital Beltway?
3. If Maryland decides to pursue widening the Capital Beltway, do the conditions exist for Maryland to use a public-private partnership to finance, build, maintain and operate the additional lanes? If not, what conditions need to exist for a public-private partnership to be a viable option in Maryland?
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2 The 80-year agreement refers to 5 years of construction followed by 75 years of concession in which Fluor-Transurban will operate and provide life-cycle maintenance.