STATES MOST LIKELY TO SPONSOR SURFACE TRANSPORTATION PPPs

Exhibit 17 shows the twelve states actively participating in the Value Pricing Pilot Program as of the beginning of 2007 which also have enabling legislation for PPPs and design-build approaches to surface transportation project delivery. These three factors are leading indicators of state readiness for using alternative, innovative approaches to expedite their transportation programs and projects currently slowed due to a shortage of available funding.

Exhibit 17 - States with PPP Legislation, Design-Build Authority, and VPPP Projects

Given the combination of legal authority and willingness to innovate, the twelve states shown in Exhibit 17 represent the most likely to incorporate innovative financing and project delivery approaches associated with PPPs in their surface transportation programs and projects. However recent events suggest the addition of Nevada, Pennsylvania, New York, New Jersey, Louisiana, Mississippi, and Alabama to this list - the last three largely a consequence of the transportation reconstruction and replacement needs resulting from the devastating effects of Hurricane Katrina on the infrastructure along the Gulf Coast in 2005.