Presentation on theme: "History of Public Private Partnerships in Washington State."— Presentation transcript:
History of Public Private Partnerships in Washington State
Tacoma Narrows Bridge 1940 - “Galloping Gertie” original span collapses in wind storm. 1950 - Old span replaced by new bridge. 1993 - Population growth triggers call for an additional span. Legislature enacts initial P3 law identifying five possible pilot projects. Second Tacoma span is chosen. (Bechtel-Kiewit)
Tacoma Narrows Bridge 2000 Final EIS filed, but lawsuit invalidates financing scheme. P3 changed to D/B and legislature appropriates funding. This prompts review of state P3 statute.
Mortgage Statement: Total Principal and Interest Over 24 Years Estimated at $1.572 billion Total Borrowing $711 m Mortgage Statement: Total Principal and Interest Over 34 Years Estimated at $1.908 billion* Total Borrowing $794 m *United Infrastructure Washington (UIW) Preliminary Financing Plan dated January 25, 2001. It is estimated that toll-payers will save at least $336 million over 24 years. But there is a price associated with these savings: more risk. Original TNB “ Private Public Partnership ” : 63-20 financing **Seattle Northwest Securities, assumptions as of May 10, 2005 (interest rates as of 5/10/2005 + 50 BP with CABs issues 7-9). Traditional State Bond Financing** “Cost Savings by reversing the financing of TNB
What’s happened since? Design / Build Takes Off Gas-tax increases of 14.5 cents in 2003-2005 provides massive project rollout. Consultant design work increases from 15% to 54% of all projects by dollar value.
What’s happened since? Transportation Innovative Partnership Act (TIP) - RCW 47.29 TIFIA (low-cost loans) SAFTTE-LU (allows tolling on Interstate highways, etc.) Allows transportation-related projects and programs of all modes to be eligible for development as a public-private partnership under the Transportation Innovative Partnership Program (TIP); For transportation projects funded with toll revenues, any bonded indebtedness must be state-issued debt; Requires citizen advisory committees for projects > $300 million. Requires comparison with the department's internal ability to complete the project that documents the advantages of completing the project as a partnership versus solely as a public venture. P3 Laws Revised
P3 Proponents Not Satisfied Due to political resistance, P3 proponents nibble around the edges at legislature: 2011 – SB 5771 (Failed) Separates non-toll projects from current law. (Ferry terminal, West Coast Green Highway) 2011 – P3 Study Appropriated $425,000 study of P3s and their effective implementation. 2012 - SB 6350 (Failed) Repeals TIP. Finds that the act has not met the needs and expectations of the public or private sectors for the development of transportation projects, and states a legislative intent to continue to search for ways to bring innovative methods of transportation project delivery and finance to Washington. The private consultants were representatives of AECOM, Nossamon, and KPMG. (http://www.leg.wa.gov/JTC/Pages/PublicPrivatePartnershipsStudy.aspx) For more information contact: Vince Oliveri, PTE 17 email@example.com