Public Private Partnerships Virginia Concrete Conference March, 2011 Public Private Partnerships Dan...
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Virginia Concrete Conference March, 2011 Public Private Partnerships Public Private Partnerships Dan Dawood, P.E. (PA) Dan Dawood, P.E. (PA)
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Transcript of Public Private Partnerships Virginia Concrete Conference March, 2011 Public Private Partnerships Dan...
Virginia Concrete ConferenceMarch, 2011
Public Private PartnershipsPublic Private Partnerships
Dan Dawood, P.E. (PA)Dan Dawood, P.E. (PA)
Public Private PartnershipsPublic Private Partnerships
What are Public Private Partnerships (P3)?
A means of bringing together public and private partners to satisfy social priorities by utilizing the skills of the private sector, while relieving government of the burden of large capital expenditure, and transferring the risk of potential cost overruns to the private sector.
Public Private PartnershipsPublic Private Partnerships
Some Facts on P3• In 1992 the United Kingdom initiated the
Private Finance Initiative (PFI). • Over the past two decades 1400 P3 contracts
were signed in the European Union.
• P3s are used for prisons, Shipyards and even health care.
Public Private PartnershipsPublic Private Partnerships
So what does that all mean?
• Public Sector makes an asset available.• Public sector provides annual payment
through tolls or combination of payments.
Public Private PartnershipsPublic Private Partnerships
So what does that all mean?
• Private sector makes an offer to build or maintain asset.
• Private sector assumes risk for the period of the concession.
Public Private PartnershipsPublic Private Partnerships
How do P3’s Work?
SPV
D/BContractorBank
MaintenanceContractor
Public Private PartnershipsPublic Private Partnerships
How do P3’s Work?
Owner pays Concessionaire for leasing Asset
SPV
Owner
Public Private PartnershipsPublic Private Partnerships
Common Provisions Found in P3 Contracts:
• Agency - Owner sets standards for highway construction.
• Agency - Owner sets standards for highway maintenance.
Public Private PartnershipsPublic Private Partnerships
Common Provisions Found in P3 Contracts:
• Agency - Owner sets standards for highway for Handback Requirements.
How do Concessionaires select Pavement Type?
• P3’s for new construction are basically Design Build Projects.
• Most D-B Contractors and Design Firms use multi-disciplinary skills such as geotech, pavements, lighting, and landscaping consultants.
Public Private PartnershipsPublic Private Partnerships
How do Concessionaires select Pavement Type?• Factors affecting pavement type selection:
Initial Cost Long Term Performance Maintenance Costs Stage Construction Owner - Agency Requirements
Public Private PartnershipsPublic Private Partnerships
How do Concessionaires select Pavement Type?
• Typically the D-B Contractor’s Team will evaluate the results of a Life Cycle Cost Analysis (LCCA)
• M&R’s in the LCCA are based on the SPV Team and local experience (PMS data if available).
Public Private PartnershipsPublic Private Partnerships
How do Concessionaires select Pavement Type?
• D-B Contractors ultimate goal is to WIN
• If the agency allows, the Concessionaire may choose HMA and perform stage construction through the concession period.
• P3’s which used concrete pavements*** Germany, Belgium, and Austria rarely saw any maintenance over the concession period
Public Private PartnershipsPublic Private Partnerships
How do Concessionaires select Pavement Type?
• Concrete is selected if the LCCA produces reasonable results
• Contractor experience with concrete placement
• Availability of local materials
• Agency preference in the project requirements!
Public Private PartnershipsPublic Private Partnerships
Why Concrete Should Be Considered For P3***
• 30 year P3’s in Germany, Austria, and Belgium with concrete pavements see little to no maintenance.
• Reducing future maintenance cost benefits both the contractor and agency in the long run.
Public Private PartnershipsPublic Private Partnerships
Why Concrete Should Be Considered For P3***
• Reducing future maintenance cost benefits the contractor by lowering the total bid amount for the project.
• Decreasing the amount of routine maintenance and required M&R also benefits the motoring public.
Public Private PartnershipsPublic Private Partnerships
Concrete pavements are a good and viable pavement solution for P3 projects providing the contractor and agency with a high performing low maintenance roadway structure.
Public Private PartnershipsPublic Private Partnerships
