Pennsylvania Senate to Take Up P3 Transportation Bill

Pennsylvania's Senate will consider legislation enabling public-private partnerships for bridges and roads when it reconvenes April 30.

Last week, the House passed a similar bill by a 128-to-66 vote. Transportation Committee chairman Rep. Richard Geist, R-Altoona, was a co-sponsor. It would establish a seven-member board to review toll-road concessions.

Public entities would retain ownership, while private companies would build, operate or fund the projects.

"This is a true jobs bill," according to Geist, who said the legislation had been eight years in the making. "This will bring private investment into the state, whether it's pension fund money or a Goldman Sachs. This bill has been vetted and worked on by experts all over the United States. These are big projects. It's nothing but a home run for our economy and for Pennsylvania."

Infrastructure projects have been popular with pension funds since the leasing in 2005 of the Chicago Skyway toll road, which involved a $1.83 billion, 99-year lease, and attracted worldwide attention from the capital markets.

According to Geist spokesman Raymond Smith, the Senate and House will reconcile their versions.

"The chairman has a good relationship with the Senate leaders, and at some point, we'll see a P3 bill on the governor's desk for signing," Smith said.

Republican Gov. Tom Corbett's transportation funding advisory commission urged the passage of P3 legislation in its findings, released last August.

"Such legislation would make PPPs a viable method for project delivery and operation of transportation systems," the commission said.

Two years ago, the Pennsylvania State Transportation Advisory Committee estimated the state's unfunded transportation needs at about $3.5 billion.

"The gap is growing and will reach an estimated $7.2 billion in 10 years if we do not take action," the commission said.

Rep. Steven Santarsiero, D-Lower Makefield, opposed the bill, saying it would vest too much power in political appointees.

Moody's Investors Service assigns a Aa1 rating to Pennsylvania's general obligation bonds, while Fitch Ratings and Standard & Poor's assign a AA-plus and a AA, respectively.

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Transportation industry Pennsylvania
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