Mark Foster, chief financial officer of the North Carolina Department of Transportation (NCDOT), reports on innovative financing at the Charlotte Chamber 2011 Transportation Summit.
6. NC Gross Domestic Product Adjusted for Inflation vs. Transportation Revenues % GDP has increased but the percent spent on transportation has decreased
19. Government Owns - Operates Design - Build Design - Build Finance - Operate - Maintain (“concession Model”) Design -Build Operate - Maintain Private Sector Owns and Operates Build, Own, Operate Build, Own, Operate - Transfer Traditional 100% Government Owned Model Key difference: Private Sector Financing in “P3” approach Current “P3” Model 100% Privatized Private Sector Involvement Private Sector Risks Government owns asset; private sector designs and builds to meet public specifications often for a fixed price. Cost risk transferred to private sector Government owns asset; private sector designs, builds and operates. Cost and operational risk transferred to private sector Government owns asset; Grants private sector the right to develop asset and receive revenues generated. Private sector takes cost and operational risk. Performance standards and rates defined in concession agreement. Private sector Initially owns asset: finances, designs, builds and operates asset for defined period and receives revenues for defined period. At end of period, ownership transferred to government. Private sector owns and operates asset to provide governmental service. Performance standards are defined initially and regulated/monitored on an ongoing basis. Public/Private Sector Innovation & Financing
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21. P3s Are Happening & Adding Capacity in the U.S. List of projects in various stages of procurement, may not be exhaustive States: Texas - TC-35, I-69/TTC, I-635 North Tarrant Express, DFW Connector Georgia - Northwest Corridor, I-285 Northwest TOT Lanes Virginia - Capital Beltway HOT Lanes Corridor Florida - Port of Miami Tunnel, I-595 Improvements, Coast Outer Beltway
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23. Turnpike Authority - Mid-Currituck Bridge Public Private Partnership Financial analysis including evaluation of private financing versus traditional toll financing underway
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25. Toll Technology Contracts are in place for full toll operations & collection on the Triangle Expressway The systems being put into place (including software systems and other infrastructure) are easily expandable to meet the needs of all toll projects under development as well as additional projects statewide North Carolina’s Toll Roads are being construction with the latest technology available They will have “open road tolling” with no toll collection booths
This is a snapshot of 10 Year Needs broken out by Highway and Non-Highway projects Highway needs (including Bridges, resurfacing and safety projects) totaled to $45 Billion Non Highway Needs totaled to $9 Billion Our Cash Model in the Dept projects available revenue of: $9 Billion for Highways $1.5 Billion for Non Highways Therefore the total Needs vs Rev picture is almost 5 to 1: $54 B in Needs and $10.5 B in Rev