California Department of Transportation (Caltrans)      Overview of P3s in CaliforniaAGC Engineering Division             ...
California Transp. SystemCalifornia’s system is one of the largestand most complex in the countryCalifornia Roadways      ...
Transp. Financing Context• California GDP is about $1.8 trillion• Typical Infrastructure Investment  – Need 2-2.5% of GDP ...
Transp. Financing in CA• Limited Traditional Revenue Sources  – Excise Tax (Diesel & Gasoline)  – Sales Tax (Diesel & Gaso...
Transp. Financing in CA   $13.8 Billion in 2010/11 Funding                               State 24%                        ...
Transp. Financing in CA• Federal Hwy Trust Fund in Crisis  – Near Insolvent & Bailed Out Several    Times  – Reduced Feder...
Current Legislation  Senate Bill 4 (SBX2 4)• Authorizes Caltrans and Regional  Transportation Agencies to implement P3  Pr...
P3 Program UpdateThe Department’s Goal:Develop a program that is fully integrated as asustainable element of project deliv...
P3 Program Activities• Play a leadership role to enable projects   – Create transparent standards for implementation   – S...
Emerging Pipeline…Consists of Projects that:  •   meet a high-priority transportation need;  •   enjoy significant public ...
Pipeline P3 Projects• I-710 Freight Corridor ($6.7 billion)  (Add two dedicated truck lanes in each direction as well as  ...
Pipeline P3 Projects• MTC Express Lane Network ($6 billion)  (Expand mobility options by creating a seamless  800-mile net...
Other Opportunities…• OCTA I-405 Managed Lanes• SANDAG SR 11 Otay Mesa• SR 152 Freight Corridor
Presidio Parkway P3 ProjectKEY DATES:• Issued RFQ on February 2, 2010• Shortlist Announcement on April 8, 2010• Issued Dra...
Presidio Parkway P3 Project
Presidio Parkway P3 Project• Replace deficient facility • New tunnels• Wide landscaped            • New direct access to  ...
Presidio Parkway P3 Project
Example of P3s in USNorth Tarrant Expressway (Dallas-FW) • Term of Concession agreement: 52 years • Existing Volumes: up t...
Example of P3s in USLBJ Expressway (Dallas-FW) • Term of Concession agreement: 52 years • Existing Volumes: up to 270,000 ...
Example of P3s in US                    NTE      LBJTotal Investment:                    $2.05b   $2.7bPrivate Equity:    ...
Challenges…•Valuation of Alternative Approaches•Appropriate Risk Transfer•Transparency and Public Participation•Unavoidabl...
Conclusion…• Infrastructure funding and delivery will  continue to lag behind need• P3s are not cure all solutions and not...
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Caltrans: Overview of Public Private Partnerships (P3)

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Caltrans: Overview of Public Private Partnerships (P3)

  1. 1. California Department of Transportation (Caltrans) Overview of P3s in CaliforniaAGC Engineering Division October 27, 2011 Fall Conference Indian Wells, CA
  2. 2. California Transp. SystemCalifornia’s system is one of the largestand most complex in the countryCalifornia Roadways SHS LocalLane-Miles 50,500 303,000Total Annual VMT (billion) 177 146% Annual VMT 55% 45%•Supports 37 Million…60 Million by 2050
  3. 3. Transp. Financing Context• California GDP is about $1.8 trillion• Typical Infrastructure Investment – Need 2-2.5% of GDP – $400-500 billion in next 10 years• $13.8 billion in 2010-11 Budget
  4. 4. Transp. Financing in CA• Limited Traditional Revenue Sources – Excise Tax (Diesel & Gasoline) – Sales Tax (Diesel & Gasoline) – Sales Tax Measures – Tolls – Developer Funds• Bond Funds (GARVEE, Proposition 1B)
  5. 5. Transp. Financing in CA $13.8 Billion in 2010/11 Funding State 24% Federal 19% Local 57%
  6. 6. Transp. Financing in CA• Federal Hwy Trust Fund in Crisis – Near Insolvent & Bailed Out Several Times – Reduced Federal Funding – Reduced Buying Power• Between 2008-35 Current Policies only meets… – 44% of Maintenance needs – 36% of Improvements needs
  7. 7. Current Legislation Senate Bill 4 (SBX2 4)• Authorizes Caltrans and Regional Transportation Agencies to implement P3 Projects• Transportation Projects include Highways, Transit and Rail• No Limit on Number of Projects• Established Public Infrastructure Advisory Commission (PIAC)• Sunsets January 1, 2017
  8. 8. P3 Program UpdateThe Department’s Goal:Develop a program that is fully integrated as asustainable element of project delivery processObjectives • Leverage Existing Funding • Accelerate Project Delivery • Transfer Prudent Risk to Private Sector • Capture Private Sector Innovation • Promote Life Cycle Efficiencies/Performance • Create Competitive Tension to Drive Value • Spur Economic Growth
  9. 9. P3 Program Activities• Play a leadership role to enable projects – Create transparent standards for implementation – Share best practices• Maintain close alignment with Regional Transportation Authorities – Leverage relationships for successful P3s• Build a strong P3 organization – Integrated with the rest of Caltrans• Enhance outreach and relationship building – Develop P3 implementation guidelines – P3 technical specs library & Issue Papers
  10. 10. Emerging Pipeline…Consists of Projects that: • meet a high-priority transportation need; • enjoy significant public and political support; • have or soon will have achieved sufficient environmental readiness; • show the promise of greater value – including speed of delivery – than conventional procurement; and • have the potential to generate revenue or enhance program capacity through better leverage or other means.Categories in Pipeline – depend on the level ofprogress and effort towards P3 delivery • level one (low readiness) through • level four (in procurement)
  11. 11. Pipeline P3 Projects• I-710 Freight Corridor ($6.7 billion) (Add two dedicated truck lanes in each direction as well as one mixed flow lane in each direction, between the Ports of Los Angeles and Long Beach and State Route 60, near downtown Los Angeles. Additionally, several interchanges along this corridor will be improved.)• I-710 Tunnel ($4.5 to $9 billion) (Gap closure to connect I-710 to I-210 and is considered critical to improving traffic and air quality in the area. Additionally, this gap closure will alleviate traffic on several local and interstate freeways.)• High Desert Corridor ($2.5 billion) Add a four- and six-lane new freeway/highway as well as widen some segments to eight lanes [including one HOV lane in each direction].
  12. 12. Pipeline P3 Projects• MTC Express Lane Network ($6 billion) (Expand mobility options by creating a seamless 800-mile network of unobstructed lanes to provide a faster commute for travelers who use them.)• Route 101 Doyle Drive (Presidio Parkway) ($954 million) (Replace existing Doyle Drive facility, constructed in 1936-1937, with a new six-lane facility. The Project will improve the seismic, structural, and traffic safety of this roadway which serves over 120,000 vehicles per day.)
  13. 13. Other Opportunities…• OCTA I-405 Managed Lanes• SANDAG SR 11 Otay Mesa• SR 152 Freight Corridor
  14. 14. Presidio Parkway P3 ProjectKEY DATES:• Issued RFQ on February 2, 2010• Shortlist Announcement on April 8, 2010• Issued Draft RFP on May 25, 2010• Proposals Due September 2010• Notice of Intent to Award - October 2010• Submission of final Agreement to PIAC and Legislature pursuant to Section 143(c)(5)• Award and Execution of Agreement – Jan 3, 2011• Financial Close Delayed by Litigation
  15. 15. Presidio Parkway P3 Project
  16. 16. Presidio Parkway P3 Project• Replace deficient facility • New tunnels• Wide landscaped • New direct access to median Presidio Parkway• Continuous shoulders
  17. 17. Presidio Parkway P3 Project
  18. 18. Example of P3s in USNorth Tarrant Expressway (Dallas-FW) • Term of Concession agreement: 52 years • Existing Volumes: up to 200,000 vehicles per day Scope of Work: • Design, construct, finance, maintain, and operate 13 miles of roadway (~169 lane-miles) Improvement include: • Reconstruction of General Purpose Lanes (GPL) and frontage roads • Addition of 2/3 Managed Lanes per direction • Addition of 1 GPL per direction in segment 1
  19. 19. Example of P3s in USLBJ Expressway (Dallas-FW) • Term of Concession agreement: 52 years • Existing Volumes: up to 270,000 veh per day Scope of Work: • Design, construct, finance, maintain, and operate 17 miles of roadway (~185 lane-miles) Improvement include: • Reconstruction of the IH-635 GPL & frontage roads • Addition of 3 below surface ML per direction on IH635 • Addition of 3 elevated ML along I-35E with direct connectors
  20. 20. Example of P3s in US NTE LBJTotal Investment: $2.05b $2.7bPrivate Equity: $427m $665mTotal Debt: $1.05b $1.47b•PABs: $400m $615m•TIFIA: $650m $850mPublic Funds: $537m $496m
  21. 21. Challenges…•Valuation of Alternative Approaches•Appropriate Risk Transfer•Transparency and Public Participation•Unavoidable Complexity of Transactions•Perceptions …needing correction • Non-compete clauses are always part of P3s • A PPP is a synonym for tolls and with that toll increases are inevitable…windfall profits. • The public sector loses total control of the facility
  22. 22. Conclusion…• Infrastructure funding and delivery will continue to lag behind need• P3s are not cure all solutions and not applicable to all projects• P3s will not solve the serious lack of infrastructure funding• P3s are necessary tools for infrastructure delivery now and in the future
  23. 23. Questions

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