Editor’s Note: This is the first issue of NCPPP’s updated P3 Digest, through which we will deliver more news to our readers on North American P3 projects, legislation, regulations and trends in a concise, easy-to-read format. Future issues will also include a variety of exclusive articles, including our popular Q&A interviews with P3 experts, profiles of NCPPP members and updates on NCPPP events. We hope you enjoy the new P3 Digest and welcome your feedback.
Presidential candidates’ proposed transportation fixes may not pass the kick-the-tires test. Hillary Clinton and Donald Trump have promised to spend big to revitalize surface and air transportation infrastructure but the high price tags attached to each, and likely push-back from Congress, dim chances of either proposal gaining much traction. Clinton has proposed a five-year, $275 billion infrastructure plan as part of her first-100-day agenda. Of this, $25 billion would be seed funding for a national infrastructure bank — an idea the Obama administration has repeatedly lobbied for without success.Trump has called for a $500 billion infra spend, which he says could be paid for through an infrastructure bond, but Congress showed no interest in renewing the Build America Bonds initiative after it expired in 2010. … Life in the not-so-fast lane: Increasingly popular express lanes in Atlanta, Florida and California are starting to face the same sort of congestion they were designed to prevent. … Eighteen in for Illinois DOT’s $425 million I-55 managed lanes. The project involves building privately operated toll roads in the median of the 25-mile stretch of road, also known as the Stevenson Expressway, which accommodates 170,000 vehicles a day. … P3 project in the running for national transportation “People’s Choice Award”; includes $10k prize. The public can vote early and often (well, once a day) for their pick through Oct. 31. … Completion of a 21-mile stretch of a major interstate in Indiana has been put off by a year. The main contractor on the I-69 Section 5 project is feuding with the state over its alleged delays in paying subcontractors. The project is now not expected to be finished until October 2017. … Arkansas looking at toll roads. Arkansas is considering using a P3 to complete a 13-mile stretch of Interstate 49, which could be run as a toll road until construction costs are paid off. The state may also use this procurement method to revamp SR 189. … Area around Pennsylvania Amtrak station due for a facelift. PennDOT issued an RFQ for spruce-up of parking, retail around the Middletown Amtrak station. … Handful of Ontario P3 rail projects are a GO. Infrastructure Ontario and Metrolinx are pursuing P3s for four GO rail stations and a rail tunnel to support Go Regional Express Rail. … Update on New York’s Penn Station renovation: An adjunct train hall and space for retail will be developed in the James A. Farley Building Post Office Building to serve travelers and the station, which already accommodates New Jersey Transit trains and two subway lines, will be used by Amtrak and the Long Island Railroad, Gov. Andrew Cuomo announced Sept. 28. Related Companies,Vornado Realty and Skanska AB will develop the project, which is expected to open in December 2020. The consortium will pay the state $600 million over 30 years and an unspecified share of revenues and ad sales. … Outstanding outlier: Denver’s FasTracks, built through a P3, avoids many of the fiscal and maintenance headaches that are plaguing other cities’ transit systems. “About 71 percent of $863 million in capital funds — money used for expansion, upgrades and equipment — expended that year came from local sources, including private investment,” reports the Wall Street Journal (paywall). Denver Transit Partners will operate and maintain the system through 2044. … Oregon looking to grow its toll-to-roll program. The state’s Road User Fee Task Force wants to test an expansion of OReGO, Oregon’s Road Usage Charge Program. The model, which the state legislature will consider at its upcoming session, would impose a per-mile fee for all new vehicles rated at 20 miles per gallon or better beginning in 2025, which could bring in $88 million in transportation funding by 2040.
Join us for a Beantown Bootcamp! NCPPP will hold its next P3Bootcamp in Boston, Oct. 11-12. This extensive educational course is designed both to bring newcomers to the P3 field up to speed on how partnerships work and proven strategies for assembling successful projects. This one-and-a-half-day session will also help seasoned professionals keep up with current trends and new issues and developments. the proven strategies for assembling successful projects. Limited space is available for the Boston P3Bootcamp and for those in Jackson, MS, Nov. 16-17 and in Chicago, Dec. 13-14.
You can lead the House to water but … In a lopsided vote (95-3) the U.S. Senate passed the Water Resources Development Act (WRDA) to improve U.S. ports, waterways and clean water infrastructure in mid-September, nearly a year after news broke about contaminated water in Flint, Michigan. However, the House’s initial watered-down version of the bill didn’t address that issue “due to jurisdictional differences between the House and Senate committees,” reports The Hill. The House finally passed an amendment to the water bill Sept. 28 by a vote of 399-25 authorizing $170 million in aid for Flint. The Senate version provides $220 million for Flint and other cities; the two bills will have to be reconciled. Democrats had pushed to include money for Flint in a continuing resolution to fund the government through Dec. 9 but Republicans want it covered separately and House leaders reached a deal to ensure that this issue is addressed in the lame duck session. Meanwhile, a carcinogenic metal has been detected in New Jersey’s drinking water. … Michigan’s House passes port P3 legislation: Michigan’s House of Representatives passed legislation to permit the establishment of port authorities by cities or counties and grants them the authority to enter into P3s. The legislation also expands the definition of port facilities beyond property owned by a port authority, to include “real or personal property necessary to enhance commercial maritime activities.” … Six hats in the ring for P3 portion of hybrid Fargo-Moorhead Diversion project to protect those portions of North Dakota and Minnesota. The respondents to the Flood Diversion Authority’s RFQ to build a diversion channel are Red River Partners, Red River Alliance, Red River Valley Partners, Red River Valley Alliance, Red River Infrastructure Solutions and Lake Agassiz Partners. An RFP for the P3 portion will be issued once short-listed firms have been identified.
NCPPP’s looking for a few good leaders. Nominations are being accepted to fill vacancies for private and public sector members on NCPPP’s Executive Committee. All public and private sector NCPPP members in good standing are eligible for nomination. The selection will be made by the NCPPP Nominations Committee in accordance with the council’s by-laws. Once elected, the new committee member will serve a one year term. All who would like to be considered for this position should send an email with their expression of interest and a short biographical statement or CV by October 21 to NCPPP Executive Director Todd Herberghs at email@example.com.
Sorry, Forrest Gump: this Louisiana seafood’s not headed for the pot. A closed memorial garden and art center will become the Shreveport aquarium. Private developer Planet Aqua will invest $2.8 million in the venture and move its company headquarters to Shreveport. … Corvias to execute Michigan university’s master plan. The student housing developer has entered into a 40-year, $300 million P3 to build an apartment building to accommodate 842 new beds, retail space and a campus health center at Wayne State University’s Detroit campus. Corvias will also renovate space containing 3,100 existing beds and demolish an apartment building to create green space; the first phase of the project will open in the fall of 2018. … University of South Florida St. Petersburg to add on-campus housing by 2019 with potentially more to come by 2025. Occupancy of existing housing is at 130 percent, with almost 700 students living in crowded conditions in two residence halls. The university is also putting students up at a nearby Hilton. … Texas university adding beds as well. Texas Women’s University is seeking a partner to build an 800-bed housing complex by fall 2019. RFPs are due Oct. 21. … City hall overhaul: Berkeley, California wants to use a P3 to renovate its city hall and parks and rec complexes. Proposals in response to the city’s expression of interest request are due Nov. 11. … RFQ issued for new hospital in Toronto. The DBFOM project involves demolishing three buildings, building a larger hospital, and conducting extensive landscaping for outdoor therapy areas and therapeutic gardens.
Detroit’s west side goin’ sunny-side up. DTE will install one of the nation’s largest urban solar arrays on 10 acres it’s leasing from the city.
Atlanta re-tenders solid waste recycling project. The city is looking for a developer to lease up to 30 acres of city land to design, construct, finance, operate and maintain a facility to repurpose, reprocess or recycle at least 90 percent of Hartsfield-Jackson Atlanta International Airport’s solid waste and chipped yard trimmings from the city’s Department of Public Works. This is the second RFP the city has issued for the project. Proposals are due Dec. 7.
The Council of State Governments has published a pocket-sized report on legislative evolution of the P3 pipeline. The report points out that enacting P3 legislation isn’t enough to jump-start such projects; the necessary financing mechanisms must be in place as well. … Can P3s help ease the nation’s affordable housing crunch? Aon Infrastructure Solutions thinks they’re worth considering and points out in a new report that Canada and Great Britain already have some skin in this game.
WHAT’s NEW AT P3 INGENIUM
Here are the latest upcoming PPP projects that were launched at P3 INGENIUM over the last two weeks:
- Cooksville GO Station – Toronto, Ontario
- Highway 401 Rail Tunnel – Toronto, Ontario
- West Park Healthcare Centre – Toronto, Ontario
WHAT’S GOING ON AT NCPPP?
Here’s a quick peek at the upcoming NCPPP calendar.
- P3Bootcamp — Oct. 11-12 — Boston
- The Kentucky P3: Public-Private Partnerships Conference — Oct. 27-28 — Lexington, KY
- Great Lakes Infrastructure Exchange — Nov. 14-15 — Toronto
- DOD/Federal Energy & Water Forum — Dec. 2 — Washington, DC
- P3Bootcamp — Dec. 13-14 — Chicago
- Emerging Markets Forum — TBA — Miami
- P3Bootcamp — TBA — Miami
For more information about event programs, registration and sponsorship, please visit the NCPPP homepage.