Re entry of private sector re the late 20th century

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Unformatted text preview: ion Private Partnerships Partnerships Public - Private Partnerships are defined by the US DOT as Public Private follows: follows: “A public-private partnership is a contractual agreement formed between private public and private sector partners, which allows more private sector public ctor participation than is traditional. The agreements usually involve a participation ve government agency contracting with a private company to renovate, government construct, operate, maintain, and/or manage a facility or system. While construct, While the public sector usually retains ownership in the facility or system, the the ystem, private party will be given additional decision rights in determiining how ning private the project or task will be completed.” the Source: US DOT. Report to Congress on Public-Private Partnerships, December 2004. Source: Report This implies shared responsibility for the delivery of the project and/or its This services and shared risks and rewards. Argument for private sector involvement Argument Leverage scarce public resources Leverage Expedite project delivery Expedite Improve cost-effectiveness of project development Improve Increased access to capital markets through applications of Increased alternative approaches to project: Funding Funding Financing Financing Contract delivery Contract Preservation Preservation Major Types of PPP Major 1. Private Contract Fee Services Most common form; this category includes: Most Contract Planning Contract Environmental Studies Environmental Facility and Right Of Way Maintenance Facility Of Way Maintenance Operation Operation 2.. 2 Alternative Project Delivery Design-Build: Design Saves Time Saves Saves Cost Saves Innovative Technologies Innovative Reduced Risk Reduced 3. Multimodal Partnership Park and Ride Park High Occupancy Lanes or Tolled Lanes (HOT) High Bus Rapid Transit (BRT) Bus Airport Transit Extension Airport Truck/Rail Transfer Facilities Truck/Rail PPP cont. PPP 4. Joint development Transit-oriented development Transit Economic development-based partnerships: these provide access to Economic based additional capital and operating revenues through: additional Receipt of tax increment financing Receipt Special assessment or business improvement Special Access fees Access 5. Long-term lease or concession agreements Long-term lease of publicly financed facilities Long Toll roads Toll Air rights Air Parking garages Parking Major Types of Transportation PPP Major High Asset Sale Full-Service, Long-Term Concession or Lease Multimodal Agreement (Public-Private Partnership) Joint Development Agreement (JDA – Pre-development) Transit Oriented Development (TOD – post-development) Build-Own-Operate (BOO) Build-Transfer-Operate (BTO) Build-Operate-Transfer (BOT) Project Design-Build-Finance-Operate (DBFO) Delivery Design-Build-Operate-Maintain (DBOM) Approaches Design-Build with Warranty (DB-W) Design-Build (DB) Construction Manager at Risk ([email protected]) Contract Maintenance Fee-Based Contract Services Low Major Phases of Infrastructure Project Development and Delivery Development Greenfield Life-Cycle Asset Development/Preservation PrePlanning & Acquisition Specialized Consultants Capital Projects Finance Design D-B Design-Build D-B-F-O Design-Build-Finance-Operate Long-Term Concession Development/Lease Construction Operations & Maintenance [email protected] Project Management Upkeep & Improvements Preservation Construction Manager at Risk Brownfield Asset Management D-B-O-M Design-Build-Operate-Maintain BOT/BTO Build-Operate-Transfer/ Build-Transfer-Operate BOO/BOOT Build-Own-Operate/ Build-Own-Operate Transfer Adapted from: Pekka Pakkala. Innovative Project Delivery Methods for Infrastructure – An international Perspective. Finnish Road Enterprise, Helsinki, 2002, p.32. Long-Term Maintenance Contracts Alternative PPP Arrangements Alternative 1. Fee-Based contract and contract maintenance Reduced work load Reduced Potential reduced costs Potential Opportunities for innovative technologies and efficiencies Opportunities 2. Alternative project delivery approaches Design-Bid-Build Design Division of work by specialization of effort Division specialization Reduced potential for collusion between design and construction Reduced Increased participation by local firms Increased 3. Construction Manager-at-risk ([email protected]) [email protected] enters the project development process under separate contract [email protected] Client selects [email protected] based on qualifications, not price Client [email protected] becomes the design-build contractor with a guaranteed [email protected] build maximum price maximum Advantages: Collaboration of client, designer and construction manager; anager; advancement of the project driving price negotiated. advancement ([email protected] continued) ([email protected] Potential for more optimal team Potential Direct client involvement Direct Reduced risk due to identification of design errors or omissions Reduced 4. Design-Build Combines design and construction into one phase with fixed-fee c...
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This note was uploaded on 07/25/2012 for the course ECON 111 taught by Professor King during the Spring '12 term at CSU Bakersfield.

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