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Overview of PPI’s in Georgia

Overview of PPI’s in Georgia. April 26, 2006. Earl Mahfuz, Treasurer. Opportunities Options Potential Risks Overview of Georgia PPIs. AGENDA. PPIs in Georgia. What are the opportunities for Georgia?.

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Overview of PPI’s in Georgia

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  1. Overview of PPI’s in Georgia April 26, 2006 Earl Mahfuz, Treasurer

  2. Opportunities • Options • Potential Risks • Overview of Georgia PPIs AGENDA

  3. PPIs in Georgia What are the opportunities for Georgia? • PPI brings innovation, new technology, finance and/or private resources to projects. • PPIs have the potential to bring new funding sources such as toll revenue to the table.

  4. PPIs in Georgia What are the opportunities for Georgia? • PPIs may provide concepts, technologies in addition to corridor and innovative solutions not previously contemplated • Accelerated design and construction as well as expedited project delivery • Allows closer interaction for “thinking through” issues between designers, engineers, and builders • Value Engineering to reduce costs and any duplication of effort • Brings human capital with experience in various disciplines to the project

  5. PPIs in Georgia What are the opportunities for Georgia? • PPIs have the potential to bring new funding sources such as toll revenue to the table. • Projects will be paid for in “today’s” dollars versus facing the risk of increasing construction costs. • Design-build is more efficient than the traditional “pay as you go” method. • PPIs may provide a revenue stream for the future. • Future funding may be freed up for other transportation needs.

  6. PPIs in Georgia What are the opportunities for Georgia? • Managed Lane Vision: • Mobility shall be guaranteed • Lane management should rely on congestion pricing, access, and eligibility • Within the context of a system wide plan, each solution should be tailored to individual corridor needs • Managed Lanes should have applicability statewide

  7. PPIs in Georgia What are the options for Georgia? • Managed lanes are used in conjunction with general purpose lanes to improve traffic flow on the overall highway system. Examples include: • High Occupancy Vehicle (HOV) / when tolled (HOT) • Truck Only Lanes (TOL) / when tolled (TOT) • Utilizing managed lanes in a regional system could provide: • New transportation choices for drivers willing to pay a premium. • Faster and more reliable travel times to users including buses. • New sources of funding to pay for transportation improvements. • Better utilization of the HOV lanes. • Potential for reduced congestion in existing general purpose lanes.

  8. PPIs in Georgia What are the options for Georgia? • High Occupancy Toll (HOT) Lanes • Combine HOV lanes with tolling to allow single occupancy vehicle use by paying a toll • “Managed” through congestion pricing to maintain free flow conditions even during rush hours • Truck Only Lanes (TOL) are managed lanes, barrier separated, primarily intended for the use of heavy trucks. • Serve “through-trucks” with no local deliveries • Improve safety and operations by physically separating heavy trucks from automobile traffic • Provide truckers with faster and more reliable travel time • Referred to as Truck only Toll (TOT) lanes when tolled

  9. PPIs in Georgia What are the options for Georgia? • Through a concession model for PPI, the state transfers revenue, construction, operations and/or maintenance risks to the private sector. • The private entity provides project financing. • Revenue sharing and/or a large upfront payment may be an option. • The private sector raises and repays debt with no recourse to the state.

  10. PPIs in Georgia What are the potential risks for Georgia? • Risks associated with privatization must be evaluated on a project-by-project basis. • State should be cautious in leasing assets. • However, risks may be mitigated through profit sharing. • A long term lease potentially limits future flexibility for changes in public policy. • Concessionaire raises tolls pursuant to the concession agreement.

  11. PPIs in Georgia What is the current status of PPIs in Georgia? The Department has two methodologies for PPI. Unsolicited • To date, GDOT has received four unsolicited PPI proposals. • The next slides give an overview of the three active PPIs: I-75/575 Northwest Corridor, GA 400 Crossroads Region, and I-285 Northwest TOT Lanes. Solicited • GDOT is currently working with its Federal, State, and Local partners to perform preliminary project identification and screening activities. • GDOT’s goal is to potentially advertise an RFP for solicited proposals this year.

  12. PPIs in Georgia I-75/575 Overview Where are we today in the process? • The Notice to Proceed was given to Georgia Transportation Partners (GTP) on June 1, 2006 for development phase activities. • GTP and GDOT are currently negotiating the Project Framework Agreement. • The Draft EIS is currently under review by the FHWA and FTA. I-75/575 A proposal was received in Nov. 2004 from the Georgia Transportation Partners for the development, design, construction & financing of improvements in the Northwest Corridor.

  13. I-75/575 Overview • The project, as proposed by Georgia Transportation Partners (GTP) in 2004, is to add highway and rapid transit capacity to the Northwest Corridor, saving time and improving safety in that area. • GTP proposes to add new congestion-priced lanes, to potentially include Truck Only and High Occupancy Toll Lanes,along I-75 and I-575, from I-285 to Hickory Grove and Sixes roads. to potentially include Truck Only Toll Lanes

  14. PPIs in Georgia GA 400 Overview GA 400 On Dec. 27, 2004, the Crossroads 400 Group submitted a proposal for the development, design, financing, construction, operation & maintenance of GA 400 improvements at Highway 20 (Northern boundary) to I-85 (Southern boundary) . Where are we today in the process? • GA 400 Letter of Intent to Negotiate (LOI)- the LOI is anticipated to be signed in the upcoming months pending favorable recommendations of the Advisory and Evaluation Committees and Board approval. If signed, GDOT will begin negotiations of the Developer Services Agreement (DSA) and Project Framework Agreement (PFA).

  15. GA 400 Overview • The Crossroads 400 Group Proposal adds highway capacity, saving time and improving safety in that area. • Specifically, the proposal is to add new managed lanes along GA 400 from I-85 to SR 20.

  16. PPIs in Georgia I-285 Northwest TOT Lanes Overview I-285 NW TOT Lanes On May. 18, 2006, the I-285 Northwest TOT Team submitted a proposal to plan, permit, finance, design, and implement Truck Only Toll (TOT) lanes along the northwest quadrant of I-285 and westward on I-20 to Thornton Road. Where are we today in the process? • Advisory Committee Review The Advisory Committee reviewed and determined the proposal met initial qualifications. The Department advertised for competing proposals and four competingproposals were received by the deadline. Currently, the competing proposals are under evaluation by the Advisory Committee.

  17. I-285 Northwest TOT Lanes Overview • The I-285 Northwest TOT Team Proposal adds Truck Only Toll Lanes providing freight trucks expedited operations. • The project is expected to improve safety by physically separating heavy trucks from automobile traffic.

  18. Questions and Answers For more information, please see the GDOT PPI Webpage at www.dot.state.ga.us/PPI or contact: Earl Mahfuz, Treasurer 404-656-5224 Earl.mahfuz@dot.state.ga.us

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