Virginia Discovers P3 Projects Might Not Always Save Money

Source: Daniel C. Vock, Governing, June 3, 2015

After a few high-profile setbacks, the state that’s been a model for others interested in public-private partnerships is tempering its enthusiasm for them. ….

Related:
State control of I-66 expansion could net Virginia substantial revenue
Source: Michael Laris, Washington Post, May 19, 2015

Keeping the financing and construction of a proposed expansion of Interstate 66 under state control — rather than handing those responsibilities off to private investors — could net the commonwealth $200 million to $500 million in toll revenue over 40 years to be used for other Northern Virginia transportation projects, according to a new state analysis. And gaining these benefits for taxpayers would cost the state half as much upfront, compared with doing a so-called public-private partnership, according to Virginia Transportation Secretary Aubrey Layne, who is set to describe the analysis Tuesday at a meeting of Virginia’s top transportation oversight body. … Layne acknowledged the political and financial risks inherent in keeping the project under state control. Backing by the General Assembly would be needed in some variations of the plan, and officials would have to find $400 million to $600 million in upfront public funding. But that figure would be $900 million to $1 billion for a public-private partnership, Layne said. …

TRANSPORTATION SECRETARY LAYNE ANNOUNCES FUNDING OPTIONS TO TRANSFORM I-66 OUTSIDE THE BELTWAY IN NORTHERN VIRGINIA
Source: Virginia Department of Transportation, Press Release, CO-82543, May 19, 2015

Presentation Includes Analysis Showing Lower Costs, Greater Benefits of Public Financing vs. Typical Public-Private Partnership Concession Option