COMPARATIVE USE OF PPPs FOR U.S. HIGHWAY AND TRANSIT PROJECTS

There have been 44 highway projects and 12 transit projects approved and/or completed since 1991that have used some type of PPP arrangement to expedite the financing and delivery of these projects, as shown in Exhibit 39 below.

Exhibit 39 - Major Highway and Transit PPP Projects since 1991

Exhibit 40 shows the types of PPP arrangements used for highway and transit projects delivered as PPPs since 1991. Both highway and transit PPP projects have been primarily design-build projects, with concession projects the second highest category of PPP for highways and DBOM the second highest category of PPP for transit.

Exhibit 40 - Use of PPPs for Major Highway and Transit Projects since 1991*

* Projects over $53 million with Notice to Proceed by 1991

Sources: Public Works Financing – Volume 211. December 2006, pp. 14-15.

The 12 major transit-related PPP projects alluded to in Exhibit 40 represent an investment of $9.9 billion and include the following breakdown of PPP delivery approaches: eight DB projects; three DBOM projects; and one DBFO project.

According to the FTA New Starts Program Office, 28 percent of the costs of major transit capital projects approved under the New Starts program have or are being delivered as PPPs since 2000. This percentage is expected to grow with the encouragement and support of the Federal Transit Administration, which recently initiated a PPP Pilot Program to help fund up to three New Starts projects that involve a significant use of the private sector through a PPP arrangement to move large-scale capital projects forward. 17

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17 Federal Transit Administration, Docket No: FTA-2006-23697, Public-Private Partnership Pilot Program, 72 Fed. Reg. 2583 (January 19, 2007) (the "Pilot Program Notice"). The Pilot Program was authorized by section 3011 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), Public Law 109-59, 119 Stat. 1144 et seq. (2005).