DALLAS — West Virginia plans to select a private partner in December for construction of a 3.3-mile segment of the Coalfields Expressway in its first public-private partnership under a state law passed in 2013.
The request for qualifications will be issued Sept. 12 and will be followed by a request for proposals. Selection of a successful bidder is expected in December, with construction to begin early next year.
The successful bidder will bill the state Department of Highways for the road work in equal monthly payments for a specified period during the construction phase to provide budget stability, said Brent Walker, communications director for West Virginia Department of Transportation.
"The stable, level payments will help the state with construction cash flow, especially in the summer months when we have dozens of projects under way," Walker said. "It's a way to stretch out our dollars and leverage our federal funding."
As in other road projects in West Virginia, he said, the private partner will be able to sell coal deposits unearthed along the rugged route during construction.
"If the contractor thinks it can sell the incidental coal from the project, then it will submit a lower bid in hope of getting the job," Walker said. "The lowest bid will win."
Expect more P3s in the state if this initial P3 project is successful, he said.
"Depending on how this goes and how smooth the process is, P3s might become the preferred procurement method," Walker said. "We're just dipping our toes into it right now."
The four-lane, 3.3-mile segment will connect Mullens, W.Va., to segments of the Coalfields Expressway already under construction in the state.
When completed, the Coalfields Expressway will include 65 miles of four-lane highway in West Virginia and another 50 miles in southwest Virginia. The West Virginia portion will replace more than 90 miles of two-lane mountain roads.
Richard Browning, executive director of the Coalfields Expressway Authority, said both sides will benefit from the proposed P3.
"This is a win-win for everybody," he said. "Using this type of bidding for highway construction should result in the delivery of the project to the residents of the area quicker and cheaper."
Congress first authorized funding for the highway between Beckley, W.Va., to the Virginia line in 1991 with a $50 million appropriation sought by the late Sen. Robert Byrd, D-W.Va., and Rep. Nick Joe Rahall, D-W.Va.
Rahall, who is currently the ranking Democrat on the House Transportation and Infrastructure Committee, said P3s are a tool that can be used to help fund other highway projects in West Virginia and across the country.
"Innovative financing is a true asset in attracting every available federal and other funding dollar to build our highways and the jobs that come with them," he said.
"When the dirt flies, jobs soar," Rahall said. "Improved infrastructure and business and industry not only grow jobs, they ensure the ability of our state to better compete in a complex, modern marketplace."
Federal funding to date totals $140 million, with the state spending $40 million on the project.
The West Virginia portion is expected to cost another $1 billion, the Department of Highways said. The expressway's corridor in the state "is characterized by steep grades, sharp horizontal curves, constant changes in driving conditions, and the presence of communities, schools, and 'No Passing' zones," the DOH said.
The state is also considering P3s for building bridges and several other highway segments, including another section of the Coalfields Expressway and various state facility projects, according to Transportation Secretary Paul Mattox.
