Metro P3
Challenge
Identify and advance projects that are potential candidates for public-private-partnerships (PPPs) for an agency without much experience with this innovative finance tool.
Background
California has long lagged behind other states in applying the innovative financing mechanism know as public-private-partnership. However, in 2009, legislation was passed to allow the public sector to contract private firms to design, build, finance, operate, and maintain public improvements under a long-term contract (typically 30 years). Delivery of mobility improvements is accelerated and costs are greatly reduced.
Solution
Because Metro does not have extensive experience with PPPs, they needed an advisor to identify viable projects and advance them through the process. Our relationships with Caltrans and our PPP experience with private sector clients and other public agencies allowed us to step in and advise on this effort.
With pointC’s assistance, Metro has identified six projects as candidates for PPPs and packaged them together under the title Accelerated Regional Transportation Improvements (ARTI). Packaged together, it is possible to construct all six in five years, rather than the typical 20-30 year timetable.
One of the projects identified is a toll lane on I-5 through Santa Clarita. To further accelerate this project, pointC worked with Metro and Caltrans to expedite the environmental review process in order to launch the bidding opportunity months earlier. Once proposals are received, the projects can be awarded and built 2-3 years later, dramatically speeding up the process.