There is strong support from US DOT leadership for the use of PPPs to expand the size and cost-effectiveness of the surface transportation program, and to leverage scarce public resources. The commitment of the federal transportation agencies to PPPs has been stated and restated by various senior members of U.S. DOT over the past five years. The following quotes demonstrate this continuing emphasis on PPPs as an important component of addressing the fiscal needs of the nation's surface transportation program.
In 2003, then FHWA Administrator Mary Peters (now Secretary of Transportation for the U.S. Department of Transportation) made the following comments that reflected the views of the Administration and U.S. DOT about PPPs for transportation infrastructure projects:
| "I want to be clear about where the Bush Administration stands, where US DOT and Secretary Mineta stand, and where FHWA stands. We are for public- private partnerships. We support them. We want to make them easier, much easier to do.... Despite notable successes...public private partnerships are still viewed by many in transportation as unique and fraught with legal, financial, and administrative hurdles. Abundant experience in the use of PPPs in other areas, and the growing experience in transportation illustrate that these hurdles can be overcome. We can lower costs and speed project completion. In a time of funding shortages at all levels of government, it is particularly important that we look to opportunities for the private sector to participate in funding transportation infrastructure improvements."1 |
Later in 2004, former FHWA Administrator Mary Peters further reiterated:
| "In a time of funding shortages at all levels of government, it is particularly important that we allow -- unleash -- the private sector to participate in all elements of infrastructure improvements. We know public-private partnerships work. We can lower costs and speed project completion. The time has come to let the free market and public-private partnerships deliver the innovation, cost savings, and quality they have brought to every other industry."2 |
In his farewell address before the U.S. Chamber of Commerce on July 6, 2006, former Transportation Secretary Norman Y. Mineta noted:
| "We need 'a cultural change' to move from a government-monopoly model for transportation infrastructure toward acceptance of the private sector and market forces."3 |
The inefficiencies and funding shortages in the country's transportation program underlie the current emphasis on the use of PPPs by federal transportation agency leaders at the US DOT, FHWA, and FTA. Other reasons include the opportunity to expedite badly needed transportation projects through the application of innovative project funding and financing, more cost-effective project development and delivery approaches based on best practices, and quicker introduction of enabling new technology, as noted earlier.
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1 Federal Highway Administrator Mary Peters address at: "Partnerships for Transportation and Real Estate: A Union Station Anniversary", Washington, D.C., September 24, 2003.
2 Statements delivered by Federal Highway Administrator Mary Peters at the Partnerships in Transportation Workshop, Orlando, FL - October 6, 2004.
3 Statement of Former Secretary Norman Y. Mineta in his farewell address before the Chamber on July 6, 2006.