Maryland creates P3 office as DOT revives American Legion Bridge, managed lanes project

Victor J. Blue/Bloomberg

Maryland Gov. Wes Moore is creating an office dedicated to public-private partnerships, a move that comes as the state and the Trump administration consider using a P3 to reconstruct the aging American Legion Bridge and build express lanes along I-495 and I-270 on the Maryland side of the D.C. beltway.

The first of its kind in Maryland, the new P3 center will "deploy innovative financing solutions to deliver and enhance infrastructure" and expand the state's revenue base, Moore said in a release. It will offer advisory expertise and usher projects "from concept through execution." The center will also focus on project financing options and project delivery modes, "coordinating all phases of construction from planning and design through engineering, development, and completion," the release said.

"When we bring partners to the table, we can tackle complex challenges that once seemed impossible," said Moore, a Democrat, in a statement. "The Maryland Center for Publi​​​c-Private Partnerships at Maryland Economic Development Corporation will help us do exactly that, connecting public entities with private sector innovators, universities, and nonprofit leaders to create lasting change in our communities."

The announcement comes a few months after Transportation Secretary Sean Duffy met with Moore in January to discuss paths forward for the American Legion Bridge and the collapsed Francis Scott Key Bridge.

In December, prior to the meeting, the DOT published a Request for Interest on "innovative project delivery methods" for expediting delivery of the American Legion Bridge and express toll lane project. The RFI notes the state has neither the revenue nor "the requisite bonding capacity" to independently replace the 60 year-old bridge.

Federal highway officials also met with Transurban executives on Feb. 2, according to the Federal Register. Transurban was the private partner on a massive P3 to reconstruct the bridge and build new toll lanes under former Gov. Larry Hogan. The deal fell apart in early 2023, shortly after Moore took office.

The project, expected then to be the largest P3 in the world, would have replaced the American Legion Bridge and added toll lanes to the bridge and along an expanded I-270 and part of the Capital Beltway to connect to hot lanes in northern Virginia. The P3 faced opposition and lawsuits, and after Moore expressed doubts, Transurban pulled out.

The state spent $175 million developing the original plan, the Maryland Department of Transportation said in a February response to the DOT's RFI, and noted that it has already secured a Final Environmental Impact Statement and Record of Decision.

The decision by Transurban to terminate the original deal "was in large part due to the gap in funding attributed to the significant capital cost of replacing the American Legion Bridge," MDOT said in its response.

"Accordingly, while MDOT will continue to look at innovative financing and delivery methods, like a public private partnership, to reduce reliance on federal funds for the express lanes, MDOT has submitted multiple applications" to the federal Bridge Investment Program in pursuit of federal support for the project.