NTL Record

Title Public-Private Partnerships (P3s): Federal-aid Funding and Availability Payments
Record ID 74771
Personal Name
Contributor
Sullivan, M.
Corporate Creator United States. Department of Transportation. Federal Highway Administration. Office of Innovative Program Delivery
Publisher United States. Department of Transportation. Federal Highway Administration. Office of Innovative Program Delivery
Publication Date 20170101
Language English
Abstract The Federal Highway Administration (FHWA) recently implemented a policy that will allow State Departments of Transportation (DOTs) to use Federal-aid funds in innovative long-term contracts with private developers. In such agreements, the State grants exclusive rights (a “concession”) to a developer—concessionaire—who assumes responsibility for the highway’s construction, operations, and upkeep. Such contracts often allow the concessionaire to collect tolls, but tolling may not prove suitable for every project. Instead, some States agree to regularly scheduled payments (“availability payments”) that the concessionaire earns via its ability to make the highway available to the public at prescribed levels of service. The new FHWA policy will allow those considering the availability payment public– private partnership (P3) delivery method to count on a level of Federal assistance comparable with that of a traditional public works project. Although San Francisco’s Presidio Parkway was the first project in the country to use Federal aid for availability payments, these new and expanded policy flexibilities will make it easier for other States to follow suit and take advantage of this form of innovative financing.
Rosap ID dot:55648
Rosap URL https://rosap.ntl.bts.gov/view/dot/55648
TRT Terms Public private partnerships; Infrastructure; Government agencies
Geographical
Coverage
United States
Resource type Brief
URL https://ntlrepository.blob.core.windows.net/lib/74000/74700/74771/techtools_federalaid_funding.pdf
Format PDF
Database NTL Digital Repository