Public-Private Partnerships Leadership Workshop
Successful PPPs combine open, transparent governance with effective financial tools to properly allocate risks and rewards between the government and private sectors. Become a part of the conversation that will explore “The Governance and Financial Tools of Public-Private Partnerships.”
The Center for Finance Strategy Innovation at The University of Texas at
The event will be a gathering of some of the top minds and leaders in the use of PPP's and will explore best practices, financial tools, next steps and new techniques to develop the next generation PPP projects. The goal is to engage in an educated,respectful, and interactive conversation. In this interactive workshop, you will be engaged in conversation with experts who have deep experience developing,structuring, financing and managing projects.
Panelists and key attendees at this time include:
- Congressman Pete Sessions (pending his voting schedule)
- Paul N. Wageman (Chair, NTTA)
- David Leininger (CFO, DART)
- Wes Jurey (President,
- Steven Polunsky (Committee Director,
- Bob Brown, P.E. (Deputy District Engineer,Dallas District and TxDOT PPP project leader)
- Sasha Page (Vice President, Infrastructure Management Group)
- Col. USMC (ret) Dennis Beal (Director Industry Alliances Office of Tech Commercialization, Texas A&M)
- Dr. Michael Savoie (Former Mayor of
Click Here to register.
TSRT Business Leaders' Roundtable in Plano
On Wednesday, March 10, TSRT hosted its third roundtable meeting of business leaders and TxDOT officials. The event included many of the
Later in the day, TxDOT held a Town Hall Meeting at the City of Plano Council Chambers in partnership with the North Central Texas Council of Governments (NCTCOG). Representatives from TxDOT, the NCTCOG, and other local and regional transportation partners, answered questions and provides information on projects and funding, including a brief perspective on regional infrastructure requirements for the future.
The next TxDOT Town Hall Meeting will be in Lubbock on Wednesday, March 31 at 6:30 p.m. at the Lubbock-City Council Chambers on 1625 13th Street. Click here for more information on upcoming Town Hall Meetings.
Texas Tribune: A Conversation with Deirdre Delisi
Deirdre Delisi is the chair of the Texas Transportation Commission, which oversees the statewide activities of the Texas Department of Transportation. She was appointed by Governor Rick Perry on April 30, 2008.
Delisi has more than twelve years of experience in government policy. She served as chief of staff and deputy chief of staff to Governor Perry, and served as his special assistant when he was lieutenant governor.
A former policy advisor to the presidential campaigns of Lamar Alexander and George W. Bush, Delisi served at the Texas Department of Commerce and as legislative aide for Texas Senator Bill Ratliff.
Delisi earned a bachelor's degree in political science from Duke University and master's degree in international policy studies from Stanford University.
Click Here for more information and to RSVP. RSVP deadline is Tuesday, Apr 20, 2010 at 12 p.m. (a reservation is required). Contact rsvp@texastribune.org or 512-716-8626 with any questions or for more information.
Austin Chamber State of Transportation Event
Senator Kirk Watson will introduce Senator John Carona, Chair of the Texas Senate’s Transportation and Homeland Security Committee, to address the Chamber to call for action and share what business leaders can do to ensure reliable mobility options for decades to come.
TSRT February Newsletter
TSRT Newsletter
February 2010 -Volume 4, Issue 1
Public-private partnerships are working for Texans
On January 8, TSRT released a video demonstrating how public-private partnerships and other innovations are working to meet the transportation funding needs in Texas, particularly in the Dallas-Fort Worth area. The video was released in conjunction with the TxDOT Transportation Forum. To learn more about the video, read the press release below or click here to view the video.
The video titled "Road-Building Innovations: The Dallas-Fort Worth and Texas Experience" features transportation projects in the
"No other metropolitan area in the nation is having more success getting major projects off the ground than Dallas-Fort Worth," said Bill Noble, executive director of TSRT. "Public-private partnerships have made these vital, gridlock-busting projects a reality."
Projects highlighted in the video include the North Tarrant Express (NTE), the LBJ Express and the DFW Connector in the
Because traditional transportation funding methods are not meeting our state's current or future transportation needs, the video features the use of public-private partnerships as a successful infrastructure funding option. Public-private partnerships allow local and state leaders to leverage tax dollars on projects that foster job creation, add new capacity, and minimize congestion by giving road users additional transportation choices.
Unfortunately, at a time when these projects are moving forward and demonstrating
"We must urge our lawmakers to restore this vital funding tool. There is growing consensus among transportation leaders and everyday Texans that public-private partnerships must be part of the solutions available," said Noble.
The
The video features officials and experts involved in solving Texas' transportation challenges including: Bill Hammond, President, Texas Association of Business; Hon. Oscar Trevino, Jr., P.E., Mayor, North Richland Hills; Hon. Linda Koop, Dallas City Council Member; Hon. B. Glen Whitley, Tarrant County Judge; Michael Morris, P.E., Transportation Director, NCTCOG; Hon. Jungus Jordan, Fort Worth City Council Member; Dr. C. Michael Walton, Professor of Transportation Engineering, UT Austin; Robert Poole, Transportation Policy Director, Reason Foundation; Hon. Ron Natinsky, Dallas City Council Member; Hon. Betty Ann Matthies, Mayor, Sequin; Steve Taylor,North Dallas Chamber of Commerce; and Russell Laughlin, Senior V.P., Hillwood Development.
RECENT TRANSPORTATION EVENTS:
House-Senate Transportation Committees Joint Public Hearing
The Senate Committee on Transportation and Homeland Security and the House Transportation Committee on Transportation convened in a joint hearing on Monday, February 1, 2010.
Panels of transportation experts, local elected officials and business leaders expressed a dire concern for the availability of transportation funding to address the congestion problems throughout the state. Participants of the hearing agreed that the Legislature needs to take action to identify solutions to the state's transportation funding challenges during the upcoming legislative session.
Panel members discussed possible funding mechanisms for the Legislature to consider in the next session including: ending diversions,increasing and indexing the gas tax, increasing vehicle registration fees, enacting a local option tax or vehicle sales tax, and reauthorizing the use of public-private partnerships.
Texas Transportation Commission Chairwoman Deirdre Delisi told the committee that the state needs long-term stability to fund future transportation projects. Delisi pointed out that the state is facing serious financial challenges in regard to transportation through declining revenues and declining purchasing power of gas tax funds, unreliability of federal aid, increasing efficiency of vehicles and increasing costs of construction.
Other concerns expressed by panel participants included the need to eliminate diversions and to allow the state to once again use public-private partnerships to build new infrastructure. Experts and officials told the committee that the state needs to use every tool in the toolbox and allow as many funding options as possible to get needed projects underway.
Senator John Carona observed that privately financed toll roads are more expensive to build and maintain than publicly financed roads,but Delisi argued that the private sector has greater capacity to secure financing for these projects. She said the state does not currently have the budget or borrowing capacity to finance important transportation projects, so it must turn to the private sector to provide the necessary financial support.
The 2030 committee reported its transportation needs summary to the committee, saying that the state needs to invest at least $315 billion through 2030 to maintain roadways, combat urban traffic congestion, and increase mobility and safety.
Click Here to view a video of the hearing.
To receive email alerts for upcoming committee hearing notices, Click Here.
TxDOT held its fifth annual Texas Transportation Forum January 6-8, 2010 in
The event was hosted by
If you attended the event and have not yet completed an evaluation, please submit your feedback via the online evaluation survey online evaluation survey.
Speaker presentations and podcasts are also available.
Business Leader's Transportation Roundtable in
TSRT hosted its second roundtable meeting of business leaders and TxDOT officials on December 1, 2009. The event included more than 50 of the
TSRT would like to thank the Texas Motor TransportationAssociation (TMTA) for underwriting the event and providing lunch for the guests. Another thanks to the Greater El Paso Chamber of Commerce for graciously hosting the event at their offices.
TSRT is organizing business leaders' roundtables across the state to educate business leaders on the pressing transportation infrastructure challenges we face and alternatives for meeting these challenges.
Later in the day, TxDOT held a Town Hall Meeting at the Greater El Paso Chamber of Commerce in partnership with the El Paso Metropolitan Planning Organization (MPO). Representatives from TxDOT, the El Paso MPO, and other local and regional transportation partners, answered questions and provided information about projects, infrastructure needs and funding.
UPCOMING EVENTS AND MEETINGS:
Unless otherwise stated, meetings will be held in the Ric Williamson Hearing Room of the
Thursday, February 25, 2010
Thursday, March 25, 2010
Thursday, April 29, 2010 (note that this meeting will be in
Click Here for the complete 2010 commission meeting schedule.
Upcoming
The North Central Texas Council of Governments and Texas Department of Transportation invites you to attend a town hall meeting to present your views and possible solutions for the
The meeting will be held at the City of
Other upcoming TxDOT town hall meetings include:
Click Here for more information on upcoming town hall meetings.
Business Leaders' Transportation Roundtable in
TSRT is organizing our next Business Leaders' Transportation Roundtable in
Special thanks to CROSSMARK for hosting the event and providing lunch for attendees. For more information on the event, contact Sandy Trumble at 512-782-2402 or STrumble@BetterTexasRoads.org.
TRANSPORTATION NEWS:
The Texas Transportation Commission approved an order on Jan. 28 to support the North Texas Tollway Authority in its efforts to construct State Highway 161 in
The commission agreed to back NTTA with a line of credit that would be available if help is needed to make payments on the bonds that will be issued to pay for the new projects. The order was necessary to move the issue forward because NTTA would not be able to afford to build the roads without help from the state.
Revenues from the projects are expected to sufficiently pay off the debt, but the backing from the state's highway system would provide a protection for lenders and reduce NTTA's financing costs. The line of credit from the state will likely give NTTA a much higher credit rating on the bond market, raising about $400 million more for the project through bond sales than otherwise possible.
The commission will vote Feb. 25 on a final agreement to extend the line of credit for these two projects.
Construction on the DFW Connector is Underway
State and local officials celebrated the official ground breaking of the $1.02 billion DFW Connector on February 17. The corridor, which runs along state highways 121 and 114 north of the
For more information on the DFW Connector Project, Click Here.
NTE Mobility Partners Secured Financing for
NTE Mobility Partners announced on December 17, 2009 that it achieved financial close for the construction and operation of segments of the North Tarrant Express (NTE) ahead of schedule. The 13-mile project involves a series of improvements primarily alongInterstate 820 and portions of State Highway 121/183.
The NTE project will improve existing lanes, reconstruct interchanges and create managed toll lanes, offering drivers the choice to bypass congestion on general purpose lanes. Construction on the project is expected to begin in late 2010 with proposed completion in 2015.
The $2 billion investment by NTE Mobility Partners will befinanced through a combination of public and private funds including $427 million in private equity, $400 million in unwrapped private activity bonds, $573 million from TxDOT funds, and a $650 million TIFIA loan from the
This project illustrates the advantages of public-private partnerships, which allow governments to significantly leverage limited tax dollars - in this case, the partnership allows the state to create $2 billion in roadway benefits, nearly four times the state's actual investment. Other benefits include new job creation, greater roadway choices for drivers and better traffic flow relieving carbon footprint.
"The combination of public and private financing for critical transportation infrastructure allows projects like NTE to be constructed decades earlier than they would have otherwise," said Joe Aiello, senior investment director for Meridiam Infrastructure, in a NTEMP/Cintra US press release. "While other transportation and critical infrastructure projects in the
Deloitte Reports onInfrastructure Funding and PPPs
Deloitte Reports onInfrastructure Funding and Public-Private Partnerships
Deloitte has released two reports on infrastructure funding and the use of public-private partnerships to deliver needed projects. The press release from Deloitte states that "after decades of neglect, infrastructure has finally made it to the top of the political agenda."
However, the proposed level of direct government funding will meet only a small fraction of infrastructure needs around the world. According to the release, the reports entitled"Partnering for value: Structuring effective public-private partnerships for infrastructure" and "The changing landscape for infrastructure funding and finance" look at the economic trends - the global recession and tightened credit markets that have drastically altered the landscape for infrastructure funding and finance - and the impact they have on infrastructure funding, particularly with regard to the prospects for public-private partnerships (PPPs). The reports analyze these issues and make some concrete recommendations for effective, efficient models to meet the nation's infrastructure needs.
The former report states that, "...to effectively capitalize on this rare window of opportunity, governments need to look beyond the short-term influx of stimulus dollars and articulate a much broader vision for enhancing infrastructure as measured not just by jobs but by enhanced productive capacity for the future."
The latter report concludes that, "...there should be an ongoing role for the private sector in the development of infrastructure and the public services delivered through it. The credit crisis may have temporarily changed the economics of public-private partnerships as financial transactions, but it has only served to highlight the need for new approaches to solving the world's infrastructure problem."
"We need to have an open mind about this. We need to think outside of the box," said US Department of Transportation Secretary Ray LaHood.
For more information on the reports, read the Reason Foundation's policy blog, New Deloitte Reports on Infrastructure Partnerships.
Statement by AASHTO on Senate Action on Highway and Transit Extension
Statement
by John Horsley, Executive Director of AASHTO, On Senate Action on Highway and
Transit Extension:
Less than a week remains before the
expiration of our federal highway and transit programs on February 28. Unless
Congress acts to extend the programs, billions of dollars and hundreds of
thousands of jobs are in jeopardy.
Today's vote in the Senate is the
first step to considering an extension which would ensure that states can
maintain their transportation programs and prepare for the oncoming construction
season.
Both the House bill, Jobs for
- Extend federal funding for highways
and transit programs while the Congress works on a multi-year
authorization;
- Provide $19.5 billion for the
Highway Trust Fund to ensure that funding is adequate to continue the programs;
and
- Repair the baseline for the highway
program to at least maintain last year's funding levels. Currently states are
receiving $1 billion per month less in federal highway obligation authority
because of a rescission that took place in September. If funding levels are not
restored to pre-rescission levels in the budget, the highway program will plunge
by $13 billion at a time when good construction jobs are desperately
needed.
We urge the Senate to act swiftly on
the extension, and to work with the House to advance a bill for the President's
signature before February 28.
Deloitte Reports on Infrastructure Funding and Public-Private Partnerships
However, the proposed level of direct government funding will meet only a small fraction of infrastructure needs around the world. According to the release, the reports entitled "Partnering for value: Structuring effective public-private partnerships for infrastructure" and "The changing landscape for infrastructure funding and finance" look at the economic trends - the global recession and tightened credit markets that have drastically altered the landscape for infrastructure funding and finance - and the impact they have on infrastructure funding, particularly with regard to the prospects for public-private partnerships (PPPs). The reports analyze these issues and make some concrete recommendations for effective, efficient models to meet the nation's infrastructure needs.
The former report states that, "...to effectively capitalize on this rare window of opportunity, governments need to look beyond the short-term influx of stimulus dollars and articulate a much broader vision for enhancing infrastructure as measured not just by jobs but by enhanced productive capacity for the future."
The latter report concludes that, "...there should be an ongoing role for the private sector in the development of infrastructure and the public services delivered through it. The credit crisis may have temporarily changed the economics of public-private partnerships as financial transactions, but it has only served to highlight the need for new approaches to solving the world's infrastructure problem."
"We need to have an open mind about this. We need to think outside of the box,” said US Department of Transportation Secretary Ray LaHood.
For more information on the reports, read the Reason Foundation's policy blog, New Deloitte Reports on Infrastructure Partnerships.
Recent Poll Shows Texas Voters Would Cut Highway Funds First
A recent poll shows that it is not just lawmakers who need to be convinced of the transportation funding problem facing our state.
According to the poll, forty-one percent of
About one in five surveyed in the poll said they would raise taxes or fees to reduce the deficit. Fewer participants said they would cut spending on education or health care for the poor.
“It's not so much an indicator that people are willing to tolerate the traffic as much as it is recognition about the cost of fixing it,” said Dale Craymer, president of the Texas Taxpayer and Research Association, a nonpartisan research group. Craymer says in times of budget constraints, projects that are concrete, take years to complete and cost a lot of money will be the first to go.
When given five debated options on where to get money for roads, voters ranked toll roads the highest with 21 percent. Seventeen percent chose the option to borrow money using state bonds and 16 percent said they would support an increase in the state gas tax. Other options included taking money from other programs or allowing local-option gas taxes in metro areas.
The dismal economy and lack of jobs were a prevalent worry for many of those interviewed, especially considering the alarming state deficit. Most voters said they believed offering incentives for businesses to move to
The Feb. 2-10 telephone poll of 1,508 registered voters was conducted by Blum and Weprin Associates Inc. for the Austin-American Statesman, the Dallas Morning News, the Fort Worth Star-Telegram, the Houston Chronicle and the San Antonio Express-News.
More Efficient Cars Means Less Gas Tax Revenue
"One way to address the problem would be to allow the gas tax to gradually go up as vehicle fuel efficiency improves so that it continues to bring in the same amount of revenue," the Fort Worth Star-Telegram reports. Other options include a vehicle-miles traveled tax, increasing vehicle registration fees, enacting a local option tax or vehicle sales tax, and reauthorizing the use of public-private partnerships.
The dire need for additional transportation funding to address Texas' serious congestion problems and infrastructure needs was echoed throughout the House & Senate joint transportation hearing on Feb. 1. Business leaders and transportation officials expressed their concerns to the Legislature, urging lawmakers to bring all possible options to the table so that the state can have the money it needs to build and maintain necessary projects.
Public education and involvement is vital in solving the funding crisis. "We have to get more grassroots involvement from the people stuck on Interstate 635, Loop 820, you name it," North Richland Hills Mayor Oscar Trevino said.
To read more on this issue, see the FWST article, "Cars with better mileage will dry up gas tax revenue, planners fear"
House-Senate Joint Transportation Hearing: Texas Needs All Tools on the Table
Panel members discussed possible funding mechanisms for the Legislature to consider in the next session including ending diversions from the gas tax, increasing and indexing the gas tax, increasing vehicle registration fees, enacting a local option tax or vehicle sales tax, and reauthorizing the use of public-private partnerships.
Texas Transportation Commission chairwoman Deirdre Delisi told the Legislature that the state needs long-term stability to fund future transportation projects. Delisi pointed out that the state is facing serious financial challenges in regard to transportation through declining revenues and declining purchasing power of gas tax funds, unreliability of federal aid, increasing efficiency of vehicles and increasing costs of construction. She continued that the state needs every tool in the toolbox available to get projects underway.
Senate committee chair John Carona observed that privately financed toll roads are more expensive to build and maintain than publicly financed roads, but Delisi argued that the private sector has greater capacity to secure financing for these projects. She said the state does not currently have the budget or borrowing capacity to finance important transportation projects, so it must turn to the private sector to provide the financial support necessary for needed projects.
Delisi sited SH 130 as an example of a project that would otherwise not have been built without the use of a public-private partnership. For more on how public-private partnerships have made projects happen throughout Texas, watch the TSRT video entitled “Road-Building Innovations: The Dallas-Fort Worth and Texas Experience” . The video features transportation projects that are underway after years of planning and hopeful thinking, and testimonials from officials directly involved in the projects demonstrating how they can serve as a model for the rest of the state and the nation to build and maintain transportation infrastructure.
"You're going to need every tool you have," Michael Morris, Director of Transportation for the North Central Texas Council of Governments, told the Legislature. "You are in so much trouble, you don't have the right to pick and choose which funding tools to use," he continued.
Bill Hammond of the Texas Association of Business urged the Legislature to gradually eliminate diversions and to allow the state to once again use public-private partnerships to build new infrastructure.
Peggy Venable of Americans for Prosperity also highlighted the need to end diversions as a funding mechanism. "We recognize that significant transportation dollars are siphoned off for other purposes," she said. "If legislators and local government officials agree that transportation is a priority, we should end those diversions – all of the diversions – before we consider any additional taxing authority."
Considering its current financial situation, the state will run out of money for new transportation projects by 2012 without a new funding method. This would mean no new roads or projects would be built, and the state would only be able to maintain current infrastructure. The 2030 committee reported its transportation needs summary to the Legislature, saying that the state needs to invest at least $315 billion through 2030 to maintain roadways, combat urban traffic congestion, and increase mobility and safety.
Click Here to view a video of the hearing.
To read more about the hearing, read the articles below:
Fort Worth Star-Telegram: North Texans revive push for local-option transportation funding bill
San Antonio Express-News: Legislators debate road funding
El Paso Times: State could look at fuel tax hike