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4. Implementation Strategies

Increasing demands in the United States for quality transportation services and infrastructure, coupled with increases in the costs of providing these services without significant increases in historical revenue streams, have resulted in many transportation agencies undertaking nontraditional, innovatively financed infrastructure projects. A concern among State and Federal managers is the effectiveness of the audit stewardship and oversight for these projects.

Infrastructure projects can include traditional design and construction, DB, PPP, and concession elements. Many projects are now being awarded to multinational firms with the experience and resources to acquire large government transportation projects. The trend is increasing toward transportation contracts that are larger both in size and dollar amount. In addition, more States are using innovative financing techniques (primarily credit programs) to advance these projects.

European nations also have employed innovative financing methods to meet increasing infrastructure needs, and they have considerable experience in auditing large, innovative transportation projects with DB, PPP, and concession elements. To examine and document the best programs and practices employed by the European nations in the stewardship and oversight of large and innovatively funded projects, a diverse team of financial management specialists with representation from Federal and State transportation agencies, academia, and the private sector traveled to Europe in May 2006.

The scan team identified several strategies for disseminating and fostering the findings and recommendations of this scan. The implementation strategies are summarized below as short term (within 1 year after completion of this report) and long term (within 3 years after the completion of this report):

4.1. Short-Term Implementation Strategies

4.2. Long-Term Implementation Strategies

AASHTO and FHWA should partner in providing consultation and training of auditors and other financial managers involved in PPPs and other innovative transportation procurement contracts. This consultation and training should include development of the following:

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