txdot ppp lessons learned draft - ibtta · lessons learned previous and current projects i-35...

TxDOT Public-Private Partnerships Lessons Learned

OMW: Market, Communication, and Policy Trends in Tolling International Bridge, Tunnel and Turnpike Association

Monday, June 18, 2012

Edward P. Pensock, Jr., P.E. Director, Strategic Projects Division Texas Department of Transportation 125 E. 11th Street Austin, TX 78701-2483 Office: (512) 936-0965 E-mail: Ed.Pensock@txdot.gov

TxDOT Public-Private Partnerships Lessons Learned

AGENDA

Where we have been

What we have learned

Where we are going

TxDOT Public-Private Partnerships Lessons Learned

Previous and Current Projects

I-35 Corridor Advisory Committee

Four I-35 Corridor Segment Committees Project Capital Cost* Delivery Method Type of Project

SH 130 Segments 1 – 4 (awarded 2002)

$1.51 billion Design-Build Toll road

SH 130 Segments 5 & 6 (awarded 2007)

$1.34 billion Concession Toll road

North Tarrant Express (awarded 2009)

$2.05 billion Concession Managed Lanes

DFW Connector (awarded 2009)

$1.02 billion Design-Build Managed Lanes

LBJ / IH 635 (awarded 2009)

$2.7 billion Concession Managed Lanes

TxDOT Public-Private Partnerships Lessons Learned

AGENDA

Where we have been

What we have learned

Where we are going

TxDOT Public-Private Partnerships Lessons Learned

Ensure Project Readiness

Early definition of project Technical Elements Financial Strategy

Obtain environmental clearance

Establish stakeholder support Increases public trust Reduces risk to proposers

Funding & Project Readiness

Appropriate Traffic & Revenue Forecasts (if needed)

Value Engineering and Project Scope

Good Costs Estimates

Design & Construction

ROW & Utilities (if appropriate)

Life Cycle (if applicable)

Financing

Good Feasibility Analysis

Financing & Project Readiness

Early Coordination and Identification of: Public Funds Available Private Funds Anticipated Public Bond Issuance Innovative Funding Mechanisms

− TIFIA − PABs − Reinvestment Zones & Districts

TxDOT Public-Private Partnerships Lessons Learned

Improve Technical Requirements

Submittal requirements Align deliverables with progress of

work Streamline as much as possible

Design criteria and performance standards

Tailor documents to procurement approach

Nail down details

TxDOT Public-Private Partnerships Lessons Learned

Enable Process Improvement

Performance Standard Evolution

Aesthetic Guidelines

Right-of-Way & Utilities Prescriptive vs. Performance Process Consider Electronic Approvals

TxDOT Public-Private Partnerships Lessons Learned

Oversight and Transparency

Attorney General Review

Legislative Budget Board

State Comptroller

Public Hearing

Financial Disclosure

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51

Equity Return

Lifecycle

O&M

Debt Service

Construction

Revenue

Concession Cash Flow Profile

TxDOT Public-Private Partnerships Lessons Learned

Stakeholder Involvement

TxDOT Public-Private Partnerships Lessons Learned

Considerations on any PPP Project:

Agency Goals

Stakeholder Goals

Project Goals

Project Related Risks

Market Conditions

Size (Generally under $2B)

Delivery Method

TxDOT Public-Private Partnerships Lessons Learned

AGENDA

Where we have been

What we have learned

Where we are going

TxDOT Public-Private Partnerships Lessons Learned

Requests for Information

Not all PPP’s are the Same

The Industry has strong opinions

Collaboration Fosters Better Results

Private Sector

Public Sector

Risk Transfer

Revenue-Based Concession

DBB DB DBOM Availability Payment

Public Private

Partnership

TxDOT Public-Private Partnerships Lessons Learned

Senate Bill 1420

Provides TxDOT authority for following projects:

Grand Parkway (Houston)

IH 35E (Dallas)

North Tarrant Express (Fort Worth)

SH 183 (Dallas)

SH 249 (Houston)

SH 288 (Houston)

US 290 (Houston)

TxDOT Public-Private Partnerships Lessons Learned

Senate Bill 1420

TxDOT or Regional Mobility Authority for PPPs Loop 1 (Austin) US 183 (Austin) Outer Parkway and South Padre Second

Access (Cameron County)

Design-Build Authority Three Projects per Year ($50 million minimum

project size)

Edward P. Pensock, Jr., P.E. Director, Strategic Projects Division Texas Department of Transportation 125 E. 11th Street Austin, TX 78701-2483 Office: (512) 936-0965 E-mail: Ed.Pensock@txdot.gov