Even in an improving economy, and with Congress’s temporary
rescue of the Federal Highway Trust Fund, states are faced with further
shortfalls in federal funding for vital transportation infrastructure such
as roads and bridges. But some states are
finding a solution in alternative delivery mechanisms such as Design-Build and
Public Private Partnerships (P3s).
In Pennsylvania, the state department of
transportation is moving forward a plan to use P3 delivery for an ambitious program to replace
and repair at least 500 of the state’s bridges. Four teams have been selected to submit
proposals based on their ability to finance the project, their background and
experience in managing similar assignments and their understanding of the
project. Selection of a preferred team
is expected this fall with construction slated to begin in 2015.
In Florida, the state DoT has just completed
its first ever transportation P3 funded by a TIFIA loan from the US DoT, adding
three innovative reversible lanes to the six-lane Interstate 595 in Broward County to relieve congestion around Ft.
Lauderdale. So far, the $1.8 billion
project has been a major success, shaving
years off the state’s project timeline and coming in $275 million under budget.
Further south, the cities of Miami
and Miami Beach, working with Miami-Dade County, are considering a P3 to build
a passenger
rail link between the two communities.
Although the current plan is in its infancy, the project has been talked
about for many years and almost got off the ground in 2004 at a cost of $480
million. It’s now become the county’s
top priority transit initiative and studies suggest a P3 delivery could result
in a lower cost to build and a faster delivery. Estimates suggest that the project could
cost as little as $532 million, not much over the cost estimates anticipated 10
years ago.
Alternative deliveries such as P3s, Design-Build and Design-Build-Operate-Maintain
are no panacea. There are times, situations
and projects where traditional delivery methods still work best. All methods of delivering construction
projects create valuable jobs needed to keep the economy moving forward. But for states like California to remain
competitive, they must embrace innovation, creativity and global best
practices. Design-build and P3s must be
part of the solution.
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