Floridians for Better Transportation/TEAM FL Leadership Retreat

July 25, 2008

Orlando, Florida

Delivering 21st Century Infrastructure Through Public-Private Partnerships

John Palatiello, AMF Executive Director

December 4, 2008, Reston, VA

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• America Moving Forward –– nonprofit (501(c)(6)) business coalition committed

to advancing innovative solutions to address America’s transportation infrastructure crisis.

– promotes the benefits that can be derived from public private partnerships (P3s) where government partners with experienced private sector operators and investors to build innovative, cost-effective solutions to meet our nation’s infrastructure needs.

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Accomplishments: National Media

• Significant Media coverage of Coalition launch in January 2008 (Washington Post, Bloomberg, Reuters, The Hill, Bond Buyer)

• Letter to editor published in New York Times, “A Solution for Amtrak,” July 20 • Featured in recurring CNN piece, “Roads to Ruin,” on the infrastructure crisis facing our nation (July 29 - August 2)

• Featured in BBC segment on infrastructure crisis segment (August 29)

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Virginia

• Highlighted how Public-Private Partnerships can help Virginia meet its growing infrastructure deficit.

• AMF Op-eds• “TRANSPORTATION SESSION: Consider Public-Private Partnerships,” Richmond Times Dispatch, June 28•“For traffic relief: Public-private partnership,” Fredericksburg Freelance Star, July 17• Op-ed in Fairfax Times, September 22• Op-ed in Reston Connection, September 23

• AMF letters to the editor•“Public-private partnerships should be used more for Virginia Roads,” Roanoke Times, July 1• Richmond Times Dispatch, September 14

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• www.americamovingforward.org positioned as leader in multimedia

• Media center for all press & research

• Individual state pages allows visitors to send letters to local papers

• Since July, 3,000 new visitors to website • E-newsletter distributed with over 500 subscribers

• YouTube, Facebook, Twitter profiles for AMF

• Unique map showing all P3s nationwide

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• American Society of Civil Engineers (ASCE) estimates the U.S. needs $1.6 trillion to bring the nation’s infrastructure up to a good condition

• That does not include expansion of capacity

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• Northern Virginia Transportation Alliance estimates the Commonwealth’s road and transit needs at $100 billion

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• Citizens consistently prefer tolls over taxes to fund transportation solutions

• Compilation of Public Opinion Data on Tolls and Road PricingNational Cooperative Highway Research Program, 2008

http://onlinepubs.trb.org/onlinepubs/nchrp/nchrp_syn_377prepublication.pdf

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National Picture Today

• U.S. Highway Trust Fund in serious trouble President Bush just signed legislation to inject $8 billion and temporarily restore solvency to the Fund Fund will continue to struggle with high gas prices as people drive less Feature articles on transportation issues appearing in major outlets around the country

• Secretary Peters released pro-P3 report on transportation solutions for the future in August 2008

DOT advocacy for P3s now more audible

• Highway bill up for reauthorization in 2009 Great opportunity to demonstrate P3 success in key states

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State Picture

• Transportation budget deficits widening only getting worse

• Highway Trust Fund troubles impacting projects planned in individual states

• Reality setting in states increasingly looking for alternative ways to finance transportation projects

• States increasingly recognize P3s as important tool in the toolbox, option of first resort, not last

•At this point, views on P3s vary from state to state Virginia opinion of P3s among most positive

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• “If you want to eliminate traffic congestion then get the private sector to build all the roads and the Government to build all the cars.”

Will Rogers

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Challenges

The P3 Issue

• Belief that a “public asset” should only be managed by government, despitemany longstanding examples (utilities, loans, airlines)

• Bias against corporate management and/or foreign companies

• Uncertainty due to current market crisis

• Misconception about how public-private partnerships work

• Fear of the unknown – aversion to change – belief that toll costs will rise exorbitantly

• Lack of understanding about extent of state’s budget woes and what is needed tomaintain road conditions

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• Leasing of existing roadways is merely one type of P3

• Greenfield toll projects, hot lanes projects, and availability payment models also being used

• 25 states have passed P3 enabling legislation

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• Cooperation between governments and private companies to improve public services and infrastructure

• In transportation, long-term PPPs increasingly used for new road construction and modernizing existing roadways

• An effective way of financing, managing and operating roads while minimizing taxpayer costs and risks

• Get needed capacity built now to reduce congestion & improve mobility

• Government agency oversees all aspects of the partnership through a strong, performance-based contract

• “New” to U.S. (IN, TX, VA, GA, FL & Chicago are leaders), but commonly used for decades around the world

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• Public-private partnerships can be a valuable tool for a state to advance vital transportation infrastructure projects.

• States can choose from a variety of models as other states have already done.

• In all the models, the state is able to take advantage of the private sector’s capital and innovation.

• States are able to advance in a timely manner projects that will otherwise likely remain on the drawing board.

• States are able to shift the risk of building, operating and maintaining these roadways to the private sector partner.

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Examples:• Lease existing toll roads (Chicago Skyway, Indiana Toll Road)

• Build new roads (Texas SH-130)

• Add capacity to existing roads (Capital Beltway HOT lanes)

• Meet environmental goals (San Diego’s South Bay Expressway)

• Satisfy fiscal priorities (Chicago Midway, Parking Meter, Parking Garages – Grant Park)

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• Conclusions• Estimates of $100B available• Indiana has only fully funded transportation

plan in the Nation• Infrastructure Funds Still Look Strong

– Bob Poole, Reason, SURFACE TRANSPORTATION INNOVATIONS, November, 2008

Floridians for Better Transportation/TEAM FL Leadership Retreat

July 25, 2008

Orlando, Florida

John Palatiello, AMF Executive Director

1760 Reston Parkway, Suite 515

Reston, VA 20190

(703) 787-6665

john@americamovingforward.org ∙ www.americamovingforward.org