VIRGINIA P3 UPDATE- 2015 Jackie Cromwell, VAP3 VIRGINIA LEADERSHIP - - PowerPoint PPT Presentation

VIRGINIA P3 UPDATE- 2015

Jackie Cromwell, VAP3

VIRGINIA LEADERSHIP IN PUBLIC-PRIVATE PARTNERSHIPS

• PPTA enabling legislation

1995

• Numerous revisions to PPTA

Guidelines over time

• Creation of VAP3 office in

2010

• 2014 – Substantial update to

PPTA Implementation Manual & Guidelines

• Goal is to build strategic

program, extend VAP3 leadership

• Virginia is a national leader

and 2nd globally in P3 project development

I-95 & I-495 EXPRESS LANES PROJECTS

I-495 Express Lanes

• Opened to traffic November 2012
• Virginia’s $409 million investment

leveraged a $1.9 billion project

• Transurban increased its equity

investment in 2014

• Over 10 million users in first two years

I-95 Express Lanes

• Opens in December 2014
• Virginia contribution of $71 million

leveraged $925 million project

• Adds to managed lanes system that

include I-495 Express Lanes

ELIZABETH RIVER TUNNEL PROJECT

• Two-lane tunnel connects

Norfolk and Portsmouth

• Parallels existing Midtown Tunnel

under Elizabeth River

• Includes maintenance, safety

improvements for existing Midtown and Downtown Tunnels, extension of MLK Freeway

• VDOT maintains ownership and
• versight
• Private partner ERC will finance

and build facilities, operate and maintain for 58-year concession period

PARTNERSHIPS CREATE HUGE PUBLIC BENEFITS

P3 Project Project Cost

State Contribution

% of Total Cost Jobs Supported Economic Activity 495 Express Lanes $ 1.9 B $ 409 M 22 % 31,000 $ 3.5 B 95 Express Lanes $ 925 M $ 71 M 7.6 % 8,000 $ 2 B Midtown Tunnel $ 2.1 B $ 420.5 M 20 % 1,700 $ 170-254 M Total Benefits $ 4.9 B $ 901 M 18.4 % 40,700 jobs ~ $5.7 B

CHANGES IN PPTA PROCESS

• 2012 PPTA Implementation Manual and Guidelines were

used as foundation to solicit 100+ responses

• Key responses were:

– Broad cross section of respondents – Overwhelmingly positive – Both broad and specific – Included in new 2014 PPTA Manual & Guidelines

• Comments were incorporated in 2014 PPTA Implementation

Manual and Guidelines

– Guidelines including VfM, Risk, and Public Engagement are currently being updated and released for public comments

PPTA PROJECT DELIVERY FRAMEWORK

*Parties to be notified and briefed upon

request after the Oversight Board decision: ‒ Chairs of General Assembly committees ‒ MPO’s ‒ Interested members of General Assembly ‒ Special interest groups ‒ Regulatory Agencies ‒ Public Briefing Focus: ‒ RFI results (as appropriate) ‒ Schedule ‒ Refresh on the high points from Project Development ‒ Preliminary Procurement documents ‒ Risk Analysis and Value-for-Money ‒ Estimated project cost ‒ Potential public subsidy ‒ Potential economic benefits ‒ Preliminary Business Points ‒ Initial Finding of Public Interest Briefing Focus: ‒ Detail-Level Screening Report ‒ Desirability as P3 ‒ Feasibility as P3 ‒ HB 2 Prioritization ‒ Duration of P3 development and procurement Briefing Focus: ‒ Major Business Points ‒ Updated Risk Allocation & Management Plan ‒ Statutory Audit results ‒ Final Value-for-Money Analysis ‒ Updated economic benefits ‒ Project bid results ‒ Public subsidy (if required) ‒ Final Finding of Public Interest Draft and Final Contract Documents posted on P3 Website for review & comment Final Contract Documents posted

• n P3 Website

KEY CHANGES IN 2014 PPTA MANUAL & GUIDELINES

Increase Transparency

• Brief Oversight Board at their public

meetings

• Findings of Public Interest
• Brief General Assembly

Transportation Committee Chairmen

Enhance Competition

• Coordinate P3 process with HB 2
• Additional review when there is only
• ne proposer
• Additional review if material change

in project scope or risk allocation

KEY CHANGES IN 2014 PPTA MANUAL & GUIDELINES

Increase Public Engagement

• Develop P3 Public Engagement

Guidelines

• New VAP3 website information
• 24/7 website comment opportunities

Improve Risk Assessment and Management

• Revise Risk Management Guidelines
• Include risk workshop and

discussions, risk registers and risk management plans

PPTA Steering Committee Project Development Returned to Agency or Proposer Unsolicited P3 Projects Detail-Level Screening with Recommendations Policy Review with Recommendations Solicited P3 Projects Oversight Board* Agency NO High-Level Screening with Recommendations NO

PROJECT SCREENING PROCESS

PROJECT SCREENING PROCESS

PPTA Steering Committee Project Development Returned to Agency or Proposer Unsolicited P3 Projects Detail-Level Screening with Recommendations Policy Review with Recommendations Solicited P3 Projects Oversight Board* Agency NO High-Level Screening with Recommendations NO

High-Level Screening Criteria

• Ability to Transfer Risk
• Funding Requirement
• Ability to Raise Capital
• Complexity of Effectively Leveraging

Private Sector Innovation/Expertise

• Consistent with Federal Requirements
• Accelerated Project Development
• Satisfies Public Transportation Need
• Addresses Priorities in State, Regional

and/or Local Transportation Plan

• Project Efficiencies through PPTA Delivery

PROJECT SCREENING PROCESS

PPTA Steering Committee Project Development Returned to Agency or Proposer Unsolicited P3 Projects Detail-Level Screening with Recommendations Policy Review with Recommendations Solicited P3 Projects Oversight Board* Agency NO High-Level Screening with Recommendations NO

Detail-Level Screening Criteria

• Public Need and Benefits
• Economic Development
• Market Demand for PPTA Delivery
• Stakeholder Support
• Legislative Considerations
• Technical Feasibility
• Systematic Interface and Compatibility
• Financial Feasibility
• Legal/Legislative Feasibility
• Project Risks
• Life Cycle Management

CURRENT VAP3 PIPELINE

Status of VAP3 Pipeline

Projects in current VAP3 Pipeline 15 Projects have completed High-Level Screening 12 Projects have advanced to Detail-Level Screening 7 Projects Detail-Level Screening underway 4 Projects with completed Detail-Level Screening 3 Projects advanced as P3’s into Project Development 1

CURRENT PPTA PIPELINE

CURRENT PPTA PIPELINE

FUTURE OF VIRIGINIA P3 PROGRAM

• New 2014 PPTA Manual and

Guidelines will continue to strengthen transparency, competition, public engagement, risk assessment and management

• P3 benefits -- equity, risk sharing,

life-cycle costs, timely delivery

• Continue review of P3 process,

decision-making, & accountability

FUTURE OF VIRIGINIA P3 PROGRAM

VAP3 Pipeline will broaden in scope:

• Real Estate transactions
• Optimizing existing assets

Current VAP3 Pipeline contains procurement types:

• PPTA
• PPEA
• VPPA

VAP3 Pipeline is continuously updated and on Website

P3 PROGRAM NEXT STEPS

• Finalized 2014 PPTA

Implementation Manual and Guidelines

• Coordinated with transportation

agencies adoption of the 2014 PPTA Manual

• Finalize Guidelines in early 2015:

1. Risk Management 2. Public Engagement 3. Value for Money Analysis

• Draft PPEA Manual in early 2015

P3 PUBLIC ENGAGEMENT

• VAP3 new website – live in early December and serves as

basis for P3 program & project information

• Twitter - VAP3 live and serves as quick release of

information

• Apps – under consideration to share and interact with

consumers

P3 LESSONS LEARNED

• Permanent office acts as

champion, catalyst, guide

• Consistent, detailed guidelines

facilitate delivery, realization of public benefits

• Continuous reviews of assumptions

and conclusions improve project decisions

• Effective communications focus on

benefits produced, broad policy goals advanced

• Steady flows of information to

agencies, officials, planners, media build understanding and trust

• Others have good ideas, too, and

competition is growing

P3 SHARED CHALLENGES

• Public funds are shrinking
• Traditional delivery methods are not filling the gap
• Political focus too often is short-term and small, not strategic
• Engagement allows us to see members of the public as customers

and consumers of services willing to pay for what they value

• P3s remain unnecessarily complex, mystery to many
• More standard approaches, terms are needed
• New P3 approaches can help fill gaps beyond transportation

THANK YOU

Virginia P3 Update - 2015 www.p3virginia.org

Jackie Cromwell Virginia Office of Public-Private Partnerships Jackie.Cromwell@P3.Virginia.gov