2015 Outlook: P3 Sector
Published December 31, 2014 12:47 PM
|
Updated January 2, 2015 11:54 AM
1 Min Read
Revisions to Virginias transportation P3 policy guidelines will cement the states position as a leader in working with the private sector to deliver large, complex project, said Doug Koelemay, director of the Virginia Office of Transportation Public-Private Partnerships. Im very positive about the future for P3s in Virginia, Koelemay said. The new rules adopted in late 2014 will make more transparent the process of determining when P3s are appropriate for a project and provide more political oversight at the early stages of a project, he said.
States and local governments are getting more comfortable with the idea of leveraging private sector investments in public infrastructure through P3s, according to Tim Heilmeier of HTNB Corp.Im generally positive about the expansion of the P3 market in 2015, he said. Partnering with the private sector removes some of the uncertainties about transportation funding caused by Congresss failure to agree on a sustainable, multi-year federal highway bill, Heilmeier said. Large, expensive projects need some sense of financial security as they move from planning to construction and operation, he said. If that isnt going to come from Washington, itll have to come from the private sector.
Increased traffic resulting from a more vigorous economy and spurred by plummeting gasoline prices will keep the toll road sector at a stable outlook in 2015, Moodys Investors Service analyst Maria Matesanz said. As toll roads gain more traffic, their revenues and financial metrics will improve, given relatively stable operating expenses., said Matesanz, a Moodys senior vice president. The drop in gas prices could also lead drivers to use less-congested toll roads that provide faster and more predictable trip times, especially in urban areas.
Modern tolling technology has replaced toll booths and coin collection baskets with transponders and sensors. Motorists using a toll road no longer have to come up with the correct change or get stuck in traffic slowdowns at toll plazas. Instead, payment is painless and speedy with electronic billing, and road operators can adjust tolls to reduce congestion during peak periods.
The deadline for proposals from potential private investors in Marylands planned $2.45 billion Purple Line transit line will be delayed two months so new Gov. Larry Hogan can decide whether to proceed with the P3 light rail project. The deadline was extended to mid-March from Jan. 9 so Hogan, who will be sworn in Jan. 21, can review the Purple Line and the $2.9 billion Red Line light rail project in Baltimore. The 16-mile Purple Line would include 21 spans along its route spanning the northern suburbs of Washington, D.C., from Bethesda in Montgomery County to Carrollton in Prince Georges County. The private partner will invest $500 million to $900 million in the Purple Line in exchange for the concession to operate and maintain the system for 35 years. The state will make availability payments to the private partner of up to $200 million for 35 years.
Dont expect to see any new toll road authorizations on the calendar when the Texas Legislature meets for its 2015 session, the head of the Texas Department of Transportation told reporters in a mid-December conference call. Texans are beginning to show signs of toll fatigue, said TxDOT director Joe Weber. "There's no doubt in my mind it's out there, Weber said. We're sensitive to it. We're going to listen very closely with local communities out there." The Texas Legislature for the first session in many years will not be considering cooperative agreements for new transportation public-private partnerships, he said.
