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The final installment of the two-part series will focus on two significant decisions: selecting a contracting method and choosing an ideal design team.
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Although it is slow to take off in the U.S., there are plenty of possible benefits that could be derived through public-private partnerships, design-build and more. Experts are quick to point out, however, that it is not a magic bullet for completing construction projects.
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In late February, Alstom finalized a contract to provide 34 light rail vehicles and 30 years of maintenance services to the Rideau Transit Group consortium that was selected to design, build, finance and maintain the first line of the Ottawa Light Rapid Transit system.
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Act allows for a board to examine and approve potential public-private transportation projects. If the board determines a state operation would be more cost-effectively administered by a private company, the company will be authorized to either completely or partially take over that operation.
Read More →Recommends prioritizing corridors with demonstrated markets, such as the Northeast and California, and exploring alternative management and financing arrangements, including separating infrastructure development from rail operations and forming public-private partnerships.
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Although nothing new, employment generation is the renewed focus of new federal and local spending on rapid transit projects.
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One option to help keep costs down is replacing older vehicles through an accelerated vehicle acquisition plan that uses municipal leases. With tight credit markets and limited access to capital markets, this is an efficient, less costly option.
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Cliff Henke, a contributing editor to METRO, is senior analyst at PB. His views herein are solely his own.
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When properly employed, such partnerships between government and the private sector can expedite projects, transfer development and operations risk, and provide better opportunities to leverage limited funds.
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The East Corridor rail line is part of the Denver Regional Transportation District's $2.3 billion Eagle P3 project to be funded by a public-private partnership. Electric multiple-unit commuter rail trains will carry passengers from downtown Denver to the Denver International Airport.
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