Published on February 28, 2014
Everything You Want to Know About Public-Private Partnerships for Transportation (But Are Afraid to Ask) Xerox Transportation ©2014 Xerox Corporation. All rights reserved. Xerox® and Xerox Design® are trademarks of Xerox Corporation in the United States and/or other countries.
Problem Governments around the globe are faced with aging transportation infrastructures, declining budgets and growing populations. How do they finance infrastructure improvements so people can get where they need to go faster and cleaner? For many world governments, the answer is public-private partnerships.
What is P3? The U.S. Federal Highway Administration defines Public-Private Partnerships as: “Contractual agreements formed between a public agency and a private sector entity that allow for greater private sector participation in the delivery and financing of transportation projects.” These programs are often referred to as PPP, P3 or P3 Source: http://www.fhwa.dot.gov/ipd/p3/defined
Five Myths of P3 Myth 1 Myth 2 Myth 3 P3s are more expensive and lead to excessive profits. Private companies aren’t accountable to the public and thus cut corners. P3s are a means to cut jobs and labor costs Myth 4 Myth 5 P3 procurements are secretive and lack transparency. P3s diminish environmental protection. Source: http://www.cenews.com/article/7959/five-myths-about-public-private-partnerships
Where does P3 happen? P3 is global. Relatively speaking, P3 is still in its infancy in the United States. In Europe, especially the UK, its been popular for years. In Latin America, countries such as Chile, Brazil, and Peru are at the forefront of the P3 movement. Source: http://www.bei.europa.eu/attachments/efs/efr_2010_v04_en.pdf
What are the benefits? Why choose a P3 over traditional financing? While the P3 model varies from one project to another, they all share three commonalities: • Less time • Less money • No up-front capital for the public entity
Why Transportation? 1 2 3 Public officials are seeking innovative ways to finance and deliver high priority transportation projects. Declining revenue and tighter budgets make it harder than ever to construct, rebuild, maintain, and operate public infrastructure. Cities and government transportation agencies need more creative tools to deliver effective solutions.
Roadway Infrastructure Fact: The U.S. Federal Highway Administration encourages the consideration of public-private partnerships in the development of roadway improvements. P3 can be used for roadway construction and repair. The financing is primarily via toll user fees. Examples include: • Highways • Bridges • Tunnels Source: http://www.fhwa.dot.gov/ipd/p3/index.htm
Public Transportation P3 can be used to finance numerous upgrades to public transport, including: • Station construction • Light-rail, bus-rapid transit, street car infrastructure • Fare collection modernization
On-Street Parking Cities use parking fees to help fund many different municipal projects. P3 can be used in a lease model. A private company pays a large, upfront fee to the city for the rights to manage parking operations while providing the city with: • Smart Parking modernization • Pay-by-phone operations • Dynamic pricing and road sensor technology
How does Xerox fit in? Xerox is the world’s #1 provider of transportation services to governments with 40 years experience across 35 countries. Annually we process: • 4B electronic toll transactions • 37B public transport transactions • 20M parking transactions We are experienced helping public officials improve their transportation infrastructures via public-private partnerships.
Learning Resources Xerox Xerox Transportation Website: Twitter: P3 overview white paper: P3 parking case study: P3 public transport case study: xerox.com/transportation @XeroxTransport bit.ly/xrx-wp-p3 bit.ly/xrx-cs-ParkIndy-p3 bit.ly/cs-Riga-p3
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