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POWER POINT

PRESENTATION ONHIGHWAY

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NITTTR

Public PrivatePartnerships

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Public Private PartnershipFHWA Defnition

 A public-private partnership is a

contractual agreement formed

between public and private sectorpartners, which allows more private

sector participation than is traditional.

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Typical Uses

Contracting with a private company to:

Renovate

Construct

Operate

Maintain

 Andor Manage 

 A facility or system

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History

!oes bac" to the earliestconstruction in the #nited $tates

#sed e%tensively in &urope and other

countries $ignificant renewed interest in the

'()*s

+A egislation, /$0&A 1'(('2,

$A+&0&A-# 13**425$&6 '4

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Why

0raditional funding sources are not"eeping pace with infrastructure

investment needs and the growing

public demand for services.

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Benefts

&%pedited pro7ect completion

6ro7ect cost savings

/mproved 8uality

#se of private resources

 Access to new sources of private

capital

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Four Basic Dimensions o P3

 Although each is uni8ue, all 69s

include four basic characteristics:

$hared goals

$hared resources 1time, money,e%pertise, people2

$hared ris"s$hared benefits

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Typical Fundin !ources

0olls 0a% /ncrement +inance

+ees

!rants

oans

;onds

Other Revenue $treams

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T"o #a$or !teps

 Crafting the 6artnership /mplementing the 6artnership

IMPLEMENTATIONCRAFT

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%enesis

hats the need hats driving the need, rationale

+acility non-compliance, natural

disaster, budget deficit

/s there a need for a 6ublic6rivate

6artnership< 6reliminary 6ro7ect =efinition

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Feasibility

/s a 6ublic6rivate 6artnershipfeasible, not only financially, but

practically< Can it be done<

Mar"et Research

&conomic+inancial Analysis

6rogram, ;udget and $chedule

Ris" Analysis

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Plan and Test

+inal pro7ect definition

hat is the best way to complete the pro7ect<

as the plan been thoroughly tested to assess mar"et

demand, public and sta"eholder feedbac" and

economics<   Master schedule budget .

 political climate >fatal flaws > that could details the

pro7ect.

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Procurement and &ontractin

ow do you choose and contract withthe best-value private partner<

hats the best delivery method<

=esign-;id-;uild

=esign-;uild

+inance-=esign-;uild

hat do current statutes allow<

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Procurement and &ontractin

6rocurement Approach Sole Source, RFP, Low Bid

Ris" Allocation between 6ublic andprivate 6artners

$tructuring of ContractRis"s andRewards

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'mplement

&nvironmental

=esign

6ermitting

Construction

Commissioning and Administration

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(perate

$tartup Monitoring

 Assessment &nhancement

Contract Modifications Contract Renegotiations

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&onclusion

Questions

and   Discussion