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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