Indiana plans to finance transportation projects with P3s
| May 23, 2012 |
Public-private partnerships (P3s) seem to be all the rage, especially while the future of a highway bill reauthorization is still in the works. (Think we’ll actually have one before the latest extension expires on June 30?)
Indiana is the latest example. While the state spends down $3.8 billion generated by its 2006 lease of the Indiana Toll Road, Indiana has a series of new public-private partnerships in the pipeline that underscore its continued reliance on the technique to provide financing for transportation infrastructure projects, The Bond Buyer reports.
As of this year, all of the remaining cash from the toll road lease to a private consortium — $1.7 billion — is earmarked for ongoing projects, and officials plan to rely on other P3s to help finance transportation projects in the future, according to the The Bond Buyer.
Indiana has three major privatization deals in the works under a P3 program launched by Indiana Department of Transportation for the state’s largest infrastructure projects.
The Federal Highway Administration (FHWA) says it encourages the consideration of public-private partnerships (P3s) in the development of transportation improvements. Early involvement of the private sector can bring creativity, efficiency, and capital to address complex transportation problems facing State and local governments. The Office of IPD provides information and expertise in the use of different P3 approaches, and assistance in using tools including the SEP-15 program, private activity bonds (PABs), and the TIFIA Federal credit program to facilitate P3 projects.