What Happened?
The Pennsylvania Department of Transportation is launching a public-private partnership to replace at least 500 decaying bridges statewide. The collaboration would involve PennDOT to pay the private organization based on performance for the design, build and maintenance of the bridges.
The Goal
The average state-owned bridge in Pennsylvania at least 50 years old, and 4,200 are deemed structurally deficient and may have weight restrictions or be closed if they are not repaired. To accommodate these infrastructure needs without breaking the state budget, PennDOT launched its Rapid Bridge Replacement Project set for 2015.
About 18 percent of Pennsylvania’s bridges are structurally deficient, compared to the national average of 7 percent – which underscores the need to make repairs quickly and efficiently before the aging structures impact other functions such as transit and commerce.
How It Works
In 2012, Pennsylvania created a public-private partnership law outlining how the state government will work with private entities to complete projects amid budgetary cuts. The state divided its public-private partnerships into new and existing building projects. Each collaboration must include:
- Transfer of engineering, construction, operations or maintenance from the state to the private sector for a period of time
- Contract services taken over by the private sector
- Payments to private firms from existing revenue sources or from fees such as tolls
PennDOT plans to make the partnership for bridge repairs more efficient by mimicking the same designs and construction standards for several structures, which will accelerate completion and reduce costs. PennDOT has already made a presentation to several construction firms, and the interested companies will submit proposals to the selection committee.
The winner bidder will not only construct new bridges and repair existing ones in the short-term, but also be contracted to maintain the bridges for up to 40 years down the road. This will increase efficiency further by reducing maintenance costs over the lifecycle of each bridge.
Pay The Contractor
Public-private partnerships may increase access to capital for many state-run projects, but there is often still money to be sourced for plans to be completed. For example, many road, highway and bridge developments and repair projects can be partially funded through increased tolls or other user fees. According to the World Bank, tolls fees can be used to support public operations while many private companies charge them for revenue streams.
Tolls should, however, be implemented under certain guidelines to be most successful. In Orange County, California, officials implemented management pricing for express lanes for its 91 roadway so commuters enjoy a safe ride with predictable prices. The system includes a “Three Ride Free” program that encourages carpooling by offering discounted tolls to cars with three or more occupants, thus reducing congestion.
Similarly, in Serbia all roadways have tolls on them, and drivers pay certain prices based on the vehicles being used and distance traveled. There are different tariffs placed on foreign and domestic cars that create a need for specific tolls at borderlines. The goal is to generate consistent revenue while controlling congestion.
Teamwork On Infrastructure Projects
Gov1 has reported on redevelopment projects that rely on private collaboration or investment to enable innovation.