The federal government is spearheading an initiative to accelerate public and private collaboration for vital infrastructure improvements. Supporting Public-private partnership (P3) innovation, the U.S. Department of Transportation (USDOT) will inject $47 million into state agencies, empowering them to better engage private companies on essential infrastructure projects in local communities.
The funding will come from the Innovative Finance and Asset Concession Program (IFAC), which was established to ensure states have the resources they need to develop effective, safe transportation infrastructure.
P3s provide one of the most cost-efficient vehicles to drive improvement for transportation assets, providing essential financing services and feasible construction delivery options. Historically, P3 agreements provide the flexibility needed to take public-sector projects from concept to completion by leveraging private-sector workforces and resources.
As the nation develops and its population increases, states are tasked with finding new solutions to old problems. Congestion, safety and accessibility are only a small selection of industry concerns that impede transportation efficiency. By working with private companies, states can offload operational risks for planning, designing and building certain projects while drawing from new, innovative processes.
The grants awarded through the IFAC program specifically target the states’ needs to better explore and create P3 opportunities. Two types of grants are available through the program:
- Technical assistance for capacity-building.
- Expert services for procuring professional services to develop assets.
For example, the Capital Metropolitan Transportation Authority (CapMetro) in Central Texas will receive assistance to find advisors to complete various steps throughout the Request for Proposal (RFP) process. These include preparing and conducting RFP solicitations, identifying and choosing a top proposal, negotiating an agreement and finalizing and executing that agreement.
While the awards may not directly contribute to immediate construction projects, they empower governments at the state, county and local levels to refine their methods for implementing initiatives and overcoming challenging obstacles. Funding the means to facilitate and evaluate P3 agreements, public entities will be better equipped to discover and implement innovative financing and alternate delivery opportunities.
The Road Commission of Oakland County, Michigan, received their own share of the funding to develop a countywide wireless communications system. As part of executing the V2X technology program, the county will create a financial and contractual framework for innovative financing, reduce long-term public costs and accelerate deployment.
Additional examples include:
- The Greater Lafayette Public Transportation Corporation will build organizational capacity in innovative finance and transit-oriented development.
- The city of Boise will advance development of two transportation assets critical to restoring intercity passenger rail across the state of Idaho
- The city and county of Honolulu will assess commercial revitalization and mixed-use rehabilitation opportunities for various commercial spaces.
- Kansas City, Missouri, will create a funding plan and evaluate innovative financing mechanisms for two highway infrastructure projects.
- The Utah Transit Authority will use public and private investments to develop a mixed-use office building anchoring the Salt Lake Central Redevelopment Project.
Photo by K from Pexels
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