1. virginia’s public-private transportation act (ppta) northern border finance workshop december...
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Virginia’s Public-Private Transportation Act
(PPTA)Northern Border Finance Workshop
December 11, 2006
Thomas W. Pelnik III, P.E.Director, Innovative Project Delivery Division
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Route 895 PPTA 2002
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Overview
• Public-Private Transportation Act – Law and Policy
– Program Status
– Current Route 460 Project
– Practical Issues and Lessons Learned
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Background
Virginia PPTA, §56-556 …
• Broadly stated legislative authority
• Policy:– Public need for timely development– Traditional methods may not be adequate– P3 may be more timely or effective– Encourage private investment
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PPTA Overview
• 10 years old (enacted 1995)
• Substantive revisions to law during 2005 GA session (Chapters 504 & 562) from lessons learned
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PPTA 2005 – What Changed?
• § 56-566.1, and § 56-573.1 Interim Agreements
• § 56-560 C (2), and § 56-563 B The proposal …will address the needs identified in the appropriate state, regional, or local transportation plan by improving safety, reducing congestion, increasing capacity, and/or enhancing economic efficiency
• § 56-558.C and § 56-573.1.2 Emphasis on private investment, risk sharing and an increase in funding
• § 56-573.1 (2) Revise the state guidelines to conform with the act no later than October 31, 2005
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Guideline Goals and Principles
• Address the needs identified by Appropriate State, Regional or Local Policies and Plans
• Multimodal Solutions
• NEPA
• Promote private investment, risk sharing and an increase in funding
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Guideline Goals and Principles
• (cont’d) • Transparency and Accountability
– Public Participation– Limited Confidential Information– Limited Advocacy
• Encourage Competition for Private Sector Innovation and Investment – Stable Investment Climate– Limit State-Supported Debt– Disclose Public Financial Commitments
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Guidelines - Process
• 2005 Process:
1.Quality Control– Public Notice
2. Independent Review Panel
3.Oversight Board (CTB)
4.Submission and Selection of Detailed Proposals
5.Negotiations
6. Interim or Comprehensive Agreement (Commissioner’s Decision)
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Oversight Board Checks and Balances
• PPTA– Phase 3 Oversight Board Recommendation– Phase 6
Presentation to Oversight Board• Rationale for decision• Major business points
• Project Development– Funding allocations– Location studies
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Public Involvement
• PPTA– Phase 1 Quality Control
Public notice
– Phase 2 Independent Review Panel
Public comments
Local government comments
• Project Development– SYP meetings
– State, regional or local transportation plans
– NEPA Process
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Guidelines - Schedule
1. Quality Control 5 to 6 months (m)[Proposal meets requirements of Act 1 m]
[Public Notice 3 to 4 m]
[QC Review 1 m]
2. Independent Review Panel [goal] 5 to 8 m[Assemble Panel and schedule meetings 1 to 2 m]
[Panel meetings 4 to 6 m]
3. Oversight Board 2 m
4. Submission and Selection of Detailed Proposals [goal] 6 to 10 m
[RFDP 1.5m]
5. Negotiations [goal] 2 to 6 m
6. Review and Sign Interim Agreement or Comprehensive Agreement 1 m
• Schedule goals contingent on project complexity and private sector objectives
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PPTA Program Status
• Summary of VDOT’s PPTA Portfolio
• Value of all 11 Contracts = +$5 Billion
• Completed 5 Contracts = $767 Million
• Value of 6 Active Contracts = +$4 Billion
• Value of projects in development = +$3 Billion
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Project Contract Value in Millions
Date Signed
VMS – Interstate Maintenance $132 December 1996
Route 895 $ 324 June 1998
Route 288 $ 236 December 2000
VMS – R (Renewed) $ 162 June 2001
Coalfields Expressway $ 2,500 January 2002/06
Route 28 $ 321 September 2002
Route 199 $ 32 October 2002
Route 58 $ 20 December 2003
Dulles Rail Phase 1 (DRPT) $1,800 2004
I- 495 HOT Lanes $ 900 April 2005
Route 895 Concession $ 520 June 2006
I-95/395 HOT Lanes $ 913 October 2006
Total Value $ 5,540* *(not including 895 Concession and DRTP)
PPTA Contracts
PPTA Program Status
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• Project Description
• Proposals
• Procurement Schedule
Route 460 PPTA
Topics of Discussion
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Route 460 PPTA
• 55 miles of new highway along U.S. Route 460 Corridor from the existing I-295 interchange in Prince George County to a new interchange with U.S. Route 58 along the Suffolk Bypass.
• The typical section is a 4-lane divided, limited access
highway on new location.
•NEPA ROD Anticipated by Spring 2007
Project Description
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Route 460 PPTA
• Proposal Teams– Virginia Corridor Partners (VCP)– Itinere– Cintra 460
Conceptual ProposalsSubmitted September 14, 2006
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Route 460 PPTA
• Base Proposal:• Range of Total Design-Build Price is $1,051 million to
$1,550 million.• Public Funds include Private Activity Bonds, TIFIA loans,
Federal and State Appropriations and/or Allocations, etc.• Range of Public Funds needed to make the project
financially feasible is $624 million to $2,068 million.• Range of Tolls is consistent with the Route 460 Toll
Feasibility Study.
Proposal Ranges
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Route 460 PPTA Procurement Schedule
• RFP February 06• Proposals submitted September
06• QC Review submitted to Secretary October 06
– Proposals are in accordance with• PPTA Law• PPTA Guidelines• Solicitation for Proposals (SFP)
• Secretary Appoints Independent Review Panel November 06• Local Jurisdiction Comments Due December
06• Independent Review Panel Recommendation April 07• CTB Resolution June 07• Solicit for Detailed Proposals July 07• Detailed Proposals Due January 08• Interim or Comprehensive Agreement June 08
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Practical issues
• P3 program implementation– Resources– Impact on agency– Policies and procedures
• System operations– Impact on existing system– Performance standards– Toll rates
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Lessons Learned
– Set clear policy goals
– Establish a business process • Solicit proposals - know what you want
• Each agreement will establish precedents
• Require at-risk and equity participation
• Ensure process results in a contract
• DBFOM v DB – long term view
– Provide adequate resources - • Requires significant time investment of senior staff
• VDOT established two new divisions in 2003
– P3 is not for every project – but it can be an important part of program
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VDOT’s PPTA Program
Additional Information
VDOT Innovative Project Delivery Division Website:
http://www.virginiadot.org/business/ppta-default.asp.
Virginia’s Public-Private Transportation Act
(PPTA)Northern Border Finance Workshop
December 11, 2006
Thomas W. Pelnik III, P.E.Director, Innovative Project Delivery Division