LTC, Jack R. Widmeyer Transportation Research Conference, 11/04/2011, Anna Ni

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LTC, Jack R. Widmeyer Transportation Research Conference, 11/04/2011, Anna Ni

  1. 1. CHALLENGES FOR TRANSPORTATION PUBLIC PRIVATE PARTNERSHIP: THE CASE OF CALIFORNIA’S SR-91 EXPRESS LANES Anna Ya Ni California State University-San Bernardino Jack R. Widmeyer Transportation Research Conference, 2010
  2. 2. PUBLIC PRIVATE PARTNERSHIP <ul><li>“ a contractual arrangement between public and private-sector entities, typically involving a government agency contracting with a business or non-profit entity in order to renovate, construct, operate, maintain, and/or manage a facility or system, in whole or in part, that provides a public service”— GAO/GGD-99-71 </li></ul><ul><li>Characteristics of PPP : </li></ul><ul><ul><li>Involves “two or more actors,” at least one of which is a public entity. </li></ul></ul><ul><ul><li>Each of the participating actors can bargain on its own behalf. </li></ul></ul><ul><ul><li>The partnership involves a long-term, “enduring” relationship. </li></ul></ul><ul><ul><li>Each actor must be able to bring either material or symbolic goods to the relationship. </li></ul></ul><ul><ul><li>All actors have a “shared responsibility” for the outcomes (pp. 12-13) – Peters (1998). </li></ul></ul>
  3. 3. TRANSPORTATION PPP <ul><li>Design-Build (DB) </li></ul><ul><li>Design-Build-Operate (DBO), Design-Build-Maintain (DBM), and Design-Build-Operate-Maintain (DBOM) </li></ul><ul><li>Design-Build-Operate-Turnover (DBOT), Build-Operate-Transfer (BOT), and Design-Build-Warranty (DBW) </li></ul><ul><li>Build-Own-Operate (BOO), Buy-Build-Operate (BBO), and Buy/Lease-Develop-Operate (BDO) </li></ul><ul><li>Maintenance and Operation </li></ul><ul><li>Program Management and Strategic Planning </li></ul>
  4. 4. BENEFITS OF TRANSPORTATION PPP <ul><li>Saving Cost </li></ul><ul><li>Sharing Risks </li></ul><ul><li>Expediting Project </li></ul><ul><li>Improving Project Certainty </li></ul><ul><li>Leveraging Expertise </li></ul><ul><li>Encouraging Innovations </li></ul>
  5. 5. CHALLENGES OF TRANSPORTATION PPP <ul><li>Legal Challenges </li></ul><ul><li>Political Challenges </li></ul><ul><li>Financial Challenges </li></ul><ul><li>Risk-Sharing Challenges </li></ul><ul><li>Partnership Challenges </li></ul><ul><ul><li>Interest Diversion </li></ul></ul><ul><ul><li>Information Asymmetry </li></ul></ul><ul><ul><li>Agent Capture </li></ul></ul><ul><ul><li>Accountability </li></ul></ul>
  6. 6. THE SR91 EXPRESS LANES PPP <ul><li>Policy Background </li></ul><ul><ul><li>AB 680 </li></ul></ul><ul><li>Phase One—Design-Build-Operate </li></ul><ul><li>Phase Two—The Non-Compete Controversy and the Transfer </li></ul><ul><ul><li>The non-compete clause </li></ul></ul><ul><ul><li>AB 1010 </li></ul></ul><ul><li>Phase Three—New Operation Contract </li></ul><ul><li>Recent Development </li></ul><ul><ul><li>SB 1316 </li></ul></ul>
  7. 7. DISTRIBUTION OF EFFORTS *Price (2001) Development Stage Private Public Land investment Existing state ownership Plan/environmental objectives State transportation plan Engineering design/permits CPTC Construction CPTC Tollway operation CPTC Roadway maintenance Caltrans provides Roadway policing California Highway Patrol provides
  8. 8. LESSONS LEARNED <ul><li>Gaining public acceptance is critical to the success of any transport PPP project </li></ul><ul><li>Aligning partners’ interests is fundamental to sustaining a viable, working partnership </li></ul><ul><li>Public agency needs to build up organizational capacity for contractual relationship and for contingencies </li></ul><ul><li>Public officials need to embrace the entrepreneur spirit that actively takes risk and seeks return-on-investment </li></ul>

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