Second in a two-volume set, this book discusses the role of public-private partnerships (PPPs) in global transportation infrastructure, specifically focusing on roads, bridges, and parking. To provide vital services in an era of shrinking government budgets, public-private partnerships have become an increasingly important part of travel infrastructure worldwide.
This book describes and analyses the structure of various models of PPPs in several countries, evaluating their effectiveness, and drawing policy implications for future use. The chapters were written by leading international researchers and practitioners in the transportation field where each chapter is a case study on the adoption, implementation, and outcome of transportation services. Taken together, these diverse case studies provide an integrated framework for evaluating, using PPPs, and suggesting policy implications to both the public and the private sectors in transportation. Providing rigorous empirical analysis of PPPs in transportation, this volume will be of interest to researchers in public administration, political science, public choice, and economics as well as practitioners and policymakers involved in establishing and monitoring PPPs in transportation.
Author(s): Simon Hakim, Robert M. Clark, Erwin A. Blackstone
Series: Competitive Government: Public Private Partnerships
Publisher: Springer
Year: 2022
Language: English
Pages: 327
City: Cham
Preface
Contents
P3 in Transportation: Roads, Bridges, and Parking: An Overview
Introduction
PPPs for Roads, Bridges, and Parking
Spanish Toll Road PPPs in Financial Distress: Lessons Learned from the Strategic Behavior of the Stakeholders
Risk Allocation and White Elephants in PPPs in Spain
PPPs in the Mexican Road Sector
PPPs in Colombia: Policy Lessons
PPPs in India: A Study of Two Urban Road Projects
Lessons from Indian National Highway Public–Private Partnerships
PPP Lessons from Italy’s Morandi Bridge Collapse
Applying a Performance Measurement System in European PPP Road Projects
Highway Infrastructure Delivery Through Government Finance and PPPs
EU Financial Backing to Hybrid Transport PPPs
Highway Public–Private Partnership Projects in the United States
Case Studies of Financially Distressed Highway PPPs in the United States
State PPP Laws: Why Are They Needed?
An Alternative Approach to Funding Parking Structures
PPPs in the Transportation Sector: Policy Implications
Summary and Conclusions
References
Spanish Toll Road PPPs in Financial Distress: Lessons Learned from the Strategic Behavior of the Stakeholders
The Toll Highway Concession System in Spain
Crisis of the Highway Concession Model
Impact of the Economic Crisis
Traffic Overestimation
Cost Overruns
Termination of Concession Contracts in Spain: The State’s Financial Liability
Causes to Restore the Economic Balance of Concession Contracts in Spain
Termination of Concession Contracts
State’s Financial Liability (RPA)
Strategic Behavior of the Stakeholders
Awarding of the Toll Roads
Government
Concessionaires and Construction Companies
Lenders
Economic Turndown and Land Costs Overruns
State Aids and Rebalancing of the Contracts
Government
Concessionaires and Construction Companies
Lenders
Filing for Bankruptcy
Government
Concessionaires and Construction Companies
Lenders
Agreement Proposal Promoted by the Government in the Negotiation Phase
Government
Concessionaires and Construction Companies
Lenders
Opening of the Liquidation Phase
Government
Concessionaires and Construction Companies
Lenders
SEITTSA Solution
Government
Concessionaires and Construction Companies
Lenders
The Outcome as of 2020 and the Foreseeable Future
Lessons Learned
Glossary of Terms
References
Risk Allocation and White Elephants in PPPs in Spain
Introduction
Risk Allocation in Road PPPs
The Trade-Off Between Risk Transfer and White Elephants
Case Study: Road PPPs in Spain
Renegotiations and Bailouts
A New Wave of Toll Motorway PPPs
A New Collapse of Toll Motorway PPPs
Summary and Conclusions
References
PPPs in the Mexican Road Sector
The Mexican Toll Road Sector
Public–Private Partnership Models
Project Risks, Mitigation, and Cases
Right of Way-Related Risks
During Construction
During Operations
Equity Contribution Risk
Construction Risk
Traffic Demand Risk
Toll-Related Risks
Toll Levels
Toll Increases and Debt-Related Obligations
Acts of God and Force Majeure-Related Risks
Acts of God
Force Majeure
Risk Compensation
Areas of Opportunity
Lessons Learned
Conclusions
Reference
PPPs in Colombia: Policy Lessons
The Public–Private Partnership Contracts for Road Projects in Latin America
The Public–Private Partnership Contract for Road Projects in Colombia
The First Generation of the PPP Contract for Road Projects in Colombia
Bogotá-Villavicencio Corridor, First PPP Model
The Second Generation of the PPP Contract for Road Projects in Colombia
The Third Generation of the PPP Contract for Road Projects in Colombia
The Fourth Generation of the PPP Contract for Road Projects in Colombia
Mulaló–Loboguerrero Corridor, a New PPP and Risk Management Characteristics
Risk Assignment
Renegotiation Context of PPP Contracts in Colombia
Summary and Conclusions: Policy Lessons
PPP Contributions in Developing Countries
Best Practices in Road Infrastructure Planning: Accessibility and Territorial Cohesion Benefits
Experiences in PPP Type and Project Scope
Learning Process in Risk Distribution
References
Public–Private Partnerships in Roads Sector: A Study of Two Urban Road Projects in India
Introduction
Public–Private Partnership (PPP)
PPPs in Roads/Highway Development
Experience of PPP Projects
PPPs in Urban Road Development
Background
Peripheral/Ring Roads
Current Study of Urban Road Projects
Case Project 1: Sardar Patel Ring Road, Ahmedabad
Introduction
Strategic Importance of the SPRR
Project Development Phasing
Project Implementation Structure
Project Cost and Financing
Land Acquisition for the Project
Case Project 2: Nehru Outer Ring Road, Hyderabad
Introduction
Strategic Importance
Project Development Phasing
Project Implementation Structure
Project Costs and Finance
Land Acquisition and Compensation
Comparison of Ring Road Projects
Conclusions
References
Lessons from Indian National Highway Public–Private Partnerships
Introduction
History of NH PPPs in India
NH PPPs Success Story
Policy Initiatives
Viability Gap Funding (VGF) and Premium (Negative VGF) Projects
Performance of NHs Under PPPs and Non-PPP Projects
Issues to Be Addressed for Further Growth of NH Projects in India
Latest Developments in NH PPPs in India
Summary
References
Public-Private Partnership: Lessons from Italy’s Morandi Bridge Collapse
Introduction
Benefits and Shortcomings of Public–Private Partnerships
The Case Study: The A10 Bridge History from the Construction to the Reconstruction
Morandi Bridge Managing Contractor and Concession Contract
The Polemic and the Judicial Inquiry Against Autostrade per l’Italia
The Joint Venture for the Construction of the New Viaduct
Infrastructure Monitoring and New Safety Regulations
Summary and Conclusions
References
Applying a Performance Measurement System in European PPP Road Projects
Introduction
Measure of Success
Methodology Adopted: A Case Study Approach
Collection of Data and Information
Evaluating Success
Development of Key Performance Indicators and Performance Measures (KPIs and PMs)
Three-Stage Delphi Method to Refine and Prioritize KPIs and PMs
Assignment of Mean Zones (M), Weights, and Weighting Scores (WS) of KPIs and PMs
Calculation of the General Level of Performance
Analysis of Key Factors in Road Project Success
Typology of the Analysed Projects
Findings and Discussions
Summary and Conclusion
References
Highway Infrastructure Delivery Through Government Finance and PPPs
Introduction
The Use of PPPs on the Strategic Road Network (SRN)
Non-strategic Road Network
Major Road Network (MRN)
Construction of Non-strategic Roads
Case Studies
Data Collection
Case Study 1: Bristol Harbourside Regeneration
Adoption of New Highways
Success of the Harbourside Redevelopment
Case Study 2: Gloucester Quays Transformation
Link Road
The High Orchard Bridge
Success of the Gloucester Quays Redevelopment
Case Study 3: Taunton Firepool Regeneration
Public/Private Partnership Delivery of NIDR
Mixed Benefits of Taunton Firepool Redevelopment
Summary and Lessons Learned
References
EU Financial Backing to Hybrid Transport PPPs
Introduction
The EU Market for Hybrid PPPs: A Complex Landscape
Before 2000: Back to the Future?
2000–2006: PPPs Enter the EU Institutional Picture
2007–2013: Consolidation and Financial Diversification
2014–2020: The Response to the Great Recession Continues
PPPs in the EU Market for Transportation Investment
The Performance of Hybrid PPPs
A New EU Habitat for Hybrid Funding
The Bratislava D4-R7 Bypass
A8 Motorway Germany
Summary and Conclusions
References
Highway Public-Private Partnership Projects in the United States
Introduction
Toll Concessions
Greenfield Toll Roads
Water Crossings
Priced Managed Lanes
Financing Toll Concessions
Availability Payment Concessions
Financing Availability Payment P3 Projects
Long-Term Lease Concessions
Financing Long-term Lease Concessions
Summary and Conclusions
Case Studies of Financially Distressed Highway Public-Private Partnerships in the United States
Introduction
South Bay Expressway
Project Overview
Financial Challenges
Resolution and Aftermath
Indiana Toll Road
Project Overview
Financial Challenges
Resolution and Aftermath
SH 130 Sections 5 & 6
Project Overview
Financial Challenges
Resolution and Aftermath
Capital Beltway Express
Project Overview
Financial Challenges
Resolution and Aftermath
Discussion
Traffic Forecasts and Aggressive Financing
Legal and Market Remedies
Commercial Lending
TIFIA’s Springing Lien and Patience
Other Issues
Conclusion
References
State Public-Private Partnership Laws: Why Are They Needed?
Introduction
Public-Private Partnership as a Contractual Delivery Method
P3 Typology
The State Legislative Role in Transportation P3
California’s First Attempt at Transportation P3
California SR 91 (Fig. 3)
California SR 125
California Senate Bill 4 and Amended Section 143
California Infrastructure Financing Act, Government Code Section 5956
Conclusion
Final Thoughts
An Alternative Approach to Funding Parking Structures
The Challenge
Challenges Facing Higher Education
Seeking Solutions for Transit Agencies and Transit-Oriented Developments
An Alternative Solution
The Opportunities
Case Study: Ohio State University
Case Study: New Jersey Transit Hamilton Station
It All Starts with Great Design
P3 Model/Structure
Why It Works
Delivery Process
Paying the Lease
Project Costs
Project Financing
P3 Considerations
Property Review and Approval for Development
Preliminary Due Diligence
Replacement Parking
Zoning Issues
Risk Sharing
Case Studies
University of Kentucky
Arborpoint at Woodland Station
Summary
P3s in the Transportation Sector: Policy Implications
Background
Financing Roads
Advantages and Disadvantages of Public-Private Partnerships (P3s)
Public-Private Partnerships (P3s) Versus Privatization of Roads
The Road Beyond
References
Index
