EXAMINATION OF RECENT DEVELOPMENTS IN DBFO PUBLIC PRIVATE PARTNERSHIP TRANSPORTATION PROJECTS IN NORTH AMERICA Submitted for presentation at the World Conference on Transportation Research, Lisbon, Portugal, and submitted for publication in the Transport Policy September 2010 By Hiroyuki Iseki. Ph.D. Assistant Professor of Planning and Urban Studies University of New Orleans Transportation Center e-mail:
[email protected] Rebecca Houtman Staff Research Associate University of New Orleans Transportation Center
[email protected] University of New Orleans 368 Milneburg Hall, 2000 Lakeshore Dr. New Orleans, LA 70148 Phone: 504-280-6029; Fax: 504-280-6272 Abstract With continuous demand for transportation infrastructure and chronic funding shortfalls faced by governments, public-private partnerships (PPPs) for infrastructure provision—including those in which private partners play a role in designing, building, financing, and operating infrastructure—have garnered increasing attention in recent years in both the United States and abroad. High profile PPP concession deals, like the leases of the Chicago Skyway and Indian Toll Road, have raised concerns in the U.S. about the protection of public interests in PPP projects, and ignited heated debates about the desirability of PPPs, which are partly driven by ideology and by vested interests, but also by questionable decisions in previous PPPs. While public agencies at the local, regional, state/province, and federal levels are interested in identifying successful PPP arrangements in the best public interest, the considerable variety and complexity of PPP deals, combined with numerous local factors unique to each project, have made the development of a successful PPP evaluation framework especially challenging. In order to fill this gap in the knowledge of appropriate PPP approaches for transportation infrastructure projects, we examine two recently closed Design-Build-Finance-Operate (DBFO) PPP deals in Canada and the U.S.: 1) British Columbia’s Golden Ears Bridge, and 2) Texas State Highway, Segments 5 and 6.