Public-Private

Partnership Policy
POGO 750 / CEIE 690
Fall 2021

 Agenda
• Check roster Break

• Course introduction • “Indiana Toll Road”

• Self introductions • Gifford

• Syllabus review • Mallett

• Pedagogy

 Check Roster
CEIE 690 POGO 750

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Course Introduction

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Public-Private Partnerships

• Bundling - design, construction, operation &

maintenance

• Risk sharing / risk transfer

• Private equity investment at risk

 Who should bear the risk when transporta on infrastructure is delivered?

DBFOM-P3
Design-Bid- Design-Build Availability DBFOM-P3
Risk Build (DBB) (DB) payment Demand risk
Scope changes (owner requested) Public Public Public Public
Environmental approvals Public Public Public Public
Permits and Approvals Public Shared Shared Shared
Right of way Public Public Shared Shared
U lity reloca on Public Shared Shared Shared
Design (errors & omissions) Public Shared Private Private
Ground condi ons Public Public Shared Shared
Environmental contamina on Public Shared Shared Shared
Construc on (cost/schedule overruns) Shared Private Private Private
Labor disputes Public Private Private Private
Quality assurance/control Public Shared Private Private
O&M + Lifecycle Public Public Private Private
Financing Public Public Private Private
Changes in law Public Public Shared Shared
Force majeure Competition / Public Shared Shared Shared
compensation
Tra c & revenue events? Public Public Public Private
Toll collec on Public Public Public Private

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Source: adapted from Virginia O ce of Public-Private Partnership & CINTRA
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 Motivations for P3s
• Infrastructure de cits

• Government budget shortfalls

• Cost overruns

• Delayed projects

• Deferred maintenance

• Not “a necessary evil” but rather “a better way to do

business”
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 P3 Bene ts

• Accelerated delivery

• Improved budget and schedule adherence

• Guaranteed maintenance

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 P3 Concerns
• Financial failures

• Transparency

• Cost of transactions

• Control

• Not business-as-usual

• Fragmentation of U.S. market

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• Widespread global experience

• Relatively new to U.S. market

• Virginia a leader in transportation P3s

• Growing demand for trained professionals in all

sectors

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 Recent Developments
• Senate infrastructure bill • I-66 outside the beltway

• Requires value-for-money analysis • Finc’l close 11/10/17

on projects >$750M
• 22.5 mi managed lanes
• Requires bonding protections for
subcontractors • $3.5billion ($1.2B TIFIA, $737M
PABs, $1.5B equity) plus $500M
• Increases PABs cap from $15B to up-front to VDOT.
$30B (existing cap 99.93%
exhausted as of May 2021). • Accelerated during COVID.

• $100M aid to states to improve P3 • I-66 inside the beltway

procurement
• Tolling started 12/4/17
• Maryland Purple Line problems
• Not a P3
• Maryland highway P3 proposal

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 Jonathan Gifford
Professor, Mason Schar School of Policy & Research
Government (schar.gmu.edu)
• Public-private partnership policy
Director, Mason Center for Transportation
Public-Private Partnership Policy • Infrastructure policy, nance, planning,
(p3policy.gmu.edu) institutions

Education: • Interstate highway system development

• BS, Civil Engineering, Carnegie Mellon • Intelligent transportation systems

University
• Transportation History
• MS, Ph.D., Civil Engineering, Univ. of
California, Berkeley Teaching

• Infrastructure past present & future (GOVT

490 / CEIE 499) [fall ’21, spring ’22]

• Applied Methods in Regional Development

and Transportation Policy (PUBP 811)
[spring ’19]

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 Self Introduction
• Name

• Academic background

• Professional background

• Interest in P3s

• Goals for the course

• Surprising fact about yourself

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Syllabus

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 Learning Objectives
• Upon successful completion of this course, the student will be
able to:

• Describe the concept of public-private partnerships (P3s)

• Explain how P3s can be applied in infrastructure delivery and

other sectors, and how they differ from “traditional” delivery
approaches

• Evaluate the impact of using public-private partnerships from

multiple perspectives (government sponsors, developers,
equity investors, and lenders)

• Apply the P3 framework to a selected project

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 Key Topic Outline

• Basic concepts / characteristics

• Value for money (VfM), public sector comparator (PSC), shadow

bid

• Financial assessment / project nance

• Risk

• Policy, administration and organization

• Public acceptance, politics, communication

• Sectoral applications - transport, social infrastructure

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 Options
• P3s in higher education

• Developing countries

• Surety

• Renegotiations

• Rating agencies

• Student interest domains…?

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 Requirements
• For each class

• Read assigned material

• Prepare required summaries

• Be prepared to discuss (key points, questions,

areas of disagreement)

• Participate in class discussions

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 Requirements
• Term paper (20%)

• Case study (20%)

• Project appraisal exercise (20%)

• Midterm (20%)

• Collaboration & participation (20%)

• Peer review term paper (5%)

• Summary/critique of cases/Indiana Toll Road writeup (5%)

• Preparation & participation in class discussions (10%)

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 Case Studies
• Written Case Study Report should include: • Written from a Neutral Point-of-View.
• Summary • Online encyclopedias are not acceptable
• Annotated List of Actors sources for citation (feel free to read to get
background information, but they are at best
• Timeline of Events tertiary sources).
• Maps of Locations • The report should be on the order of
• Risk matrix 3000-5000 words. It should be fully
• Contract type referenced. Additional readings on the order of
30 -100 pages should be assigned with the
• Cost case, these will be linked on the case web
• Financial structure page or handed out in class.
• Institutional structure • Case studies will be published on Wikibooks.
• Clear Identi cation of Policy Issues • In-class presentation (20 min) and discussion
(10 min)
• Narrative of the Case
• Non-presenters post critique before class.
• Lessons learned / takeaway
• Evaluation based on self-assessment and peer
• Discussion Questions
evaluation.
• Complete References of Cited
Source: Adapted from “Transportation Planning
Documents, primary and secondary (with
Casebook/About,” Wikibooks (accessed 9/3/14).
hyperlinks as appropriate).

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Case Study Candidates
• Maryland Purple Line • Long Beach
Courthouse
• Maryland HOT Lanes
• UC Merced
• I-66 Outside the
Beltway (Virginia) • Tideway Tunnel (UK)

• Rail station PPP • Student suggestions

(projects or sectors)
• JFK Airport

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 Case Study Selection

AR
Lauzon 0.095958326
Gibson 0.307003573 1 2 3 4

YE
Toppe 0.374038817
Scheu er 0.439077989 Long
Moyer 0.445375847
10/15
Beach
Waller 0.467179752
Feree 0.480436293
460 10/29

S
Scherer 0.484772448
Isaza 0.533465228

U
Francis 0.563342399
Presidio 11/5
Lewis 0.610812437

IO
Schroll 0.617134985
Gross 0.621406775 Eagle 11/12
Appel-Newby 0.64981306
EV
Morales 0.733879723
San
Prag 0.806615883 11/19
Oh 0.85792026
Juan
Higher
PR

Boeckl 0.955603656
Yang 0.966515303 12/3
Ed

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Case Assignments
Next Class

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 Term Paper
• Length: 2000-3000 words • Due dates:
(10-15 pp. @ 200 words/
page) • Sept. 9 - Topic and
abstract for round
• Analytical writing robin discussion
• Analytical writing: • Sept. 30 - Sources &
summarize, evaluate, methods brie ng (5
analyze, synthesize. minutes)
• Topic & abstract:
• What is the analytical
question?
• Sources and methods
• peer-reviewed journal
articles

• Description supports • Oct. 28 - for peer • other sources

the analysis, but not review
suf cient alone. • data sources
• Nov. 11 - for instructor
grade • methodology (200-300
words)
• Dec. 2 - In-class
brie ng (5 minutes); • Citation: Full footnote.
Optional resubmission

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Schedule

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Pending Scheduled Events

• Transurban Site Visit (Alexandria) - level of interest?

• Additional guest lectures

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 Academic Policies

• Schar School Policy on Plagiarism

• Mason Honor Code

• Accommodation of disabilities

• E-mail address disclosure consent

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 Issues

• Vertical + horizontal

• Public infrastructure + private development

• Transportation + social infrastructure

• TPOL + MPP + CEIE (+ MRED?)

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 Resources
Blackboard course website

Harvard Business School Publishing

Reader

Mason Center for Transportation

p3policy.gmu.edu / #p3policy
Public-Private Partnership Policy

Bond Buyer
(through Factiva & Proquest)

Public Works Financing Newsletter

(pw nance.net)

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 Student Background

• Present value / cash ow discounting / discount

rate

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