September 27, PennDOT P3 Office Aviation Conference

Transcription

1 September 27, 2017 PennDOT P3 Office Aviation Conference

2 What is a P3 Project? 1. Design, build, finance, operate and/or maintain transportation facilities 2. Transfer responsibility to the private sector for a defined period of time 3. Ensure the private firm receives payments from existing revenue or new revenue 2

3 Goals of Public-Private Partnerships Accelerate the delivery of transportation projects Deliver on-time, on-budget projects at rates higher than traditional delivery Access private sector skills and innovation Leverage private investment to enable major projects (maximize tax dollars) Shift key risks to private sector (away from taxpayers)

4 P3 Models Degree of Private Sector Risk Completely Private Design-Build-Finance-Operate-Maintain Design-Build-Finance-Maintain Design-Build-Operate-Maintain Design-Build-Finance Design-Build Design-Bid-Build Degree of Private Sector Involvement P3 Models 4

5 Creating Value for Both Parties Public Sector Shared Private Sector Monetize non-core services to generate upfront payment Alternative to traditional financing Frees up resources and increases capacity for other projects Potential improvements in asset value and operational efficiencies Partner to share risk Access to public and private funds Leverage partner s market access Reallocation of expertise and responsibilities Access to markets with traditionally high barriers to entry Leverage existing expertise to improve asset value and return Long-term, relatively predictable revenues Potential benefits from tax and other credits Utilize private sector expertise Value driven pricing Building firm brand on large scale projects

6 Key Ingredients to a Successful P3 P3 Enabling Legislation Large, complex scope Stable, long-term revenue stream Successful P3 Project Completed (or nearly completed) environmental processes Available funding Community support

7 Authorizes private entities to develop and operate qualifying transportation facilities Allows for solicited and unsolicited proposals Act 88: P3 Enabling Legislation Allows public and affected jurisdictions to comment on candidate projects Encourages investment by private entities Enables procuring agency not to be required to accept lowest price offer

8 Act 88: P3 Enabling Legislation Public-Private Transportation Partnership (P3) legislation, Act 88 of 2012 (74 Pa.C.S ): Provides an array of project delivery methods Predevelopment agreements through a concession, allowing a Development Entity to design, build, operate, maintain, manage or lease a transportation facility Allows for any other innovative or nontraditional project delivery method Requires RFPs as the source selection mechanism for P3 projects Sole-source procurements are not authorized

9 Act 88: Agreement Details Public-Private Transportation Partnership Agreement (PPA): The terms of a P3 agreement can extend for up to 99 years User fees for the subject transportation facility are authorized Ownership of the transportation facility must lie with the proprietary public entity Public bargaining unit covered employees displaced by the P3 project must be offered employment with the development entity on terms essentially identical to those in the relevant CBA for its duration Any net proceeds realized by the proprietary public entity are reserved for use in transportation projects in the Commonwealth

10 PennDOT P3 Office 10

11 P3 Board Members PennDOT Secretary Leslie S. Richards, Chair Honorable Randy Albright Secretary of the Budget Ronald Drnevich Past Chairman of the Board and CEO, Gannett Fleming, Inc. Hon. William Keller PA House of Representatives Gregory Davis Vice President, NFP Lincoln Benefits Group James Kunz Business Manager, International Union of Operating Engineers, Local 66 John J. Martino President, Martino Enterprises The Board can consider both solicited and unsolicited projects PennDOT provides the resources, staffing and professional services to support the Board s operations

12 Solicited Project Process Possible RFI by the Public Entity Proposal Submitted by the Public Entity to the P3 Office P3 Board Approval (Legislative Veto) Public Entity Issues RFP

13 Unsolicited Project Process Opportunity for One-on-One Meetings Proposal Submitted to P3 Office, Public Entity or directly to the Board P3 Board Approval (Legislative Veto) Public Entity Issues RFP

14 Projects Across the State

15 Questions Michael Bonini, Director Public-Private Transportation Partnerships Office