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

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  • 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. PUBLIC PRIVATE PARTNERSHIP
    • “ 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
    • Characteristics of PPP :
      • Involves “two or more actors,” at least one of which is a public entity.
      • Each of the participating actors can bargain on its own behalf.
      • The partnership involves a long-term, “enduring” relationship.
      • Each actor must be able to bring either material or symbolic goods to the relationship.
      • All actors have a “shared responsibility” for the outcomes (pp. 12-13) – Peters (1998).
  • 3. TRANSPORTATION PPP
    • Design-Build (DB)
    • Design-Build-Operate (DBO), Design-Build-Maintain (DBM), and Design-Build-Operate-Maintain (DBOM)
    • Design-Build-Operate-Turnover (DBOT), Build-Operate-Transfer (BOT), and Design-Build-Warranty (DBW)
    • Build-Own-Operate (BOO), Buy-Build-Operate (BBO), and Buy/Lease-Develop-Operate (BDO)
    • Maintenance and Operation
    • Program Management and Strategic Planning
  • 4. BENEFITS OF TRANSPORTATION PPP
    • Saving Cost
    • Sharing Risks
    • Expediting Project
    • Improving Project Certainty
    • Leveraging Expertise
    • Encouraging Innovations
  • 5. CHALLENGES OF TRANSPORTATION PPP
    • Legal Challenges
    • Political Challenges
    • Financial Challenges
    • Risk-Sharing Challenges
    • Partnership Challenges
      • Interest Diversion
      • Information Asymmetry
      • Agent Capture
      • Accountability
  • 6. THE SR91 EXPRESS LANES PPP
    • Policy Background
      • AB 680
    • Phase One—Design-Build-Operate
    • Phase Two—The Non-Compete Controversy and the Transfer
      • The non-compete clause
      • AB 1010
    • Phase Three—New Operation Contract
    • Recent Development
      • SB 1316
  • 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. LESSONS LEARNED
    • Gaining public acceptance is critical to the success of any transport PPP project
    • Aligning partners’ interests is fundamental to sustaining a viable, working partnership
    • Public agency needs to build up organizational capacity for contractual relationship and for contingencies
    • Public officials need to embrace the entrepreneur spirit that actively takes risk and seeks return-on-investment

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