01626401

Component

https://doi.org/10.3141/2670-05

The purpose of this paper is twofold: (a) to present a nontraditional, performance outcome–based public–private partnership (PPP) approach to finance and fund freeway reconstruction that relies not just on generating new revenue but also on optimizing scope and costs to achieve financial viability and (b) to demonstrate how the approach can be evaluated for a specific project with an innovative value for money (VfM) assessment method that considers financial parameters, risk elements, and social benefits. The paper assesses the potential effects of the approach for a hypothetical project on (a) the public agency’s financial position and (b) public welfare. For this assessment, the effects of the project itself are assessed first by comparing conventional delivery of the project with "no build," assuming that the project can be conventionally delivered in the same time frame as the PPP. Next, the effects of project acceleration are assessed by analyzing the effects of delaying conventional project delivery because of the public agency’s fiscal constraints. Finally, the PPP approach is compared with conventional delivery using public financing. The evaluation approach demonstrates how current VfM analysis practice may be enhanced by (a) including a quantitative assessment of public welfare benefits and (b) considering "no build" operations and maintenance cost savings to assess the net effect on the financial position of the agency.

01643943

17-00052

English

pp 33–41

2017

Transportation Research Record: Journal of the Transportation Research Board

9780309441742

Digital/other

Figures (1) ; Photos; References (15) ; Tables (3)

Alternatives analysis; Financing; Freeways; Metropolitan areas; Project delivery; Public private partnerships

Value for money

Administration and Management; Economics; Finance; Highways; Operations and Traffic Management; Policy

PRP, TRIS, TRB, ATRI

Dec 8 2016 9:55AM

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