FHWA Listening Session Discusses PPPs

MAP-21, the surface transportation reauthorization legislation included a provision directing the US Department of Transportation to standard transaction model contracts for Public Private Partnerships (P3s) that could serve as a base template to guide States and other public transportation providers in developing their own P3 contracts, including model documents for development, financing, construction, and operation of transportation facilities. AGC was invited by FHWA to participate in a Listening Session on February 16 to provide industry input as to what should be included in these model documents. AGC, and most of the participants, suggested that the documents should provide as much flexibility as possible to states in using PPPs and should not be drafted in a way that would discourage the private sector from participating. AGC suggested that the documents should be educational in nature and should address appropriate risk allocation. AGC also suggested that the construction contractors role in a PPP arrangement should also be addressed both from an equity partner point of view and in a design-build arrangement. AGC will continue to participate as FHWA develops these model documents.