Appendix B: Amplifying Questions

Introduction

The following questions provide detail on the topics of interest outlined in the Panel Overview of December 2007. We hope these questions can serve as a framework for the discussions for our visit in June 2008. Wherever possible, we ask that you answer the questions directly or provide examples of successes and failures in the topical area. Example contracts or contract language from successful projects will also be helpful. We would also like to visit one of your projects for a portion of our discussions.

Environment for Public-Private Partnerships

General Context

1. Generally describe the key aspects of how transportation project delivery is positioned within the political, economic, and technological structure of your country. Please comment on items such as owner structure, market structure, market competition, and the roles and responsibilities of the other primary stakeholders in the transportation life cycle.

Traditional Financing

2. Please describe the traditional means of funding highway projects in your country.
   1. What are the annual funding needs for new capacity projects and network maintenance?
   2. What funding is available from traditional sources (e.g., taxes, fees), and what is the gap between funding availability and the needs for capacity building and maintenance?

Private Financing

3. Please describe the funding of highway projects in your country through public-private partnerships.
   1. What proportion of the highway network is funded through public-private partnerships?
   2. Does the public sector provide incentives in public-private partnerships (e.g., partial funding, tax benefits, subsidies, tax-exempt financing)?
   3. Are there other governmental incentives (e.g., to build in undeveloped or economically depressed areas, to support economic development)?
   4. Are other innovative public and/or private financing mechanisms available?
   5. How is the initial tolling scheme of the facility developed and how are future toll increases indexed and presented to the users?

Original Program Development

4. Please describe the issues and challenges encountered in the original development of your public-private partnership program.
   1. What were the original motivations for the use of public-private partnerships?
   2. What major issues did your country or agency need to confront to develop the program?
   3. How was the initial enabling legislation developed and who was involved (e.g., private sector, other agencies at the national, state, and local levels)?
   4. Were external societal or nontransportationoriented goals imposed on the development of public-private partnerships (e.g., minimum wage standards, economic redevelopment, obligations treated as off-budget)?

Public and Political Perception

5. Please describe the public and political perception of the program in your country.
   1. Has there been strong public support or opposition for public-private partnerships at any particular time during the life of the program?
   2. What have been the similarities and any significant differences in public expectations of the government and the private sector facilities?
   3. What educational tools for ongoing programs have you found successful to inform citizens and legislators of the benefits of public-private partnerships?

Workforce Issues

6. Please describe how public-private partnerships have changed the traditional program of highway delivery and maintenance.
   1. What resources have been transferred from the public sector to the private sector?
   2. What is your organizational structure for developing and administering public-private partnerships (e.g., how many people participate, what disciplines are involved, to whom does this group report)?

Project Procurement and Contracting

Project Selection

7. Please describe the process used to identify and assess potential projects for the program.
   1. What processes do you use for valuation of potential projects?
   2. Do you use a “public sector comparator?” If so, is it required for each project? Is it revisited after the project is complete?
   3. What is the normal concession period (number of years) and how is it determined?
   4. Do you use public-private partnerships on smaller projects with local jurisdictions?
   5. How does the project selection relate to the overall transportation planning process (e.g., land use, economic development, environmental)?

Project Delivery

8. Please describe the process for delivering the project from concept through the completion of construction.
   1. What is the general length of time from project concept to completion and how does this compare with public sector-delivered projects?
   2. What phases of the project (e.g., project concept, environmental analysis, design, right-of-way acquisition, construction, finance, operation and maintenance) are normally handled by the public and private sectors?
   3. How do you handle environmental compliance for public-private partnership projects in which the public investment is limited or nonexistent? Is this an issue? Is it the same or different than projects with substantial public funding?

Risk Analysis and Risk Management

9. Please describe the primary elements of risk associated with a public-private partnership.
   1. Please describe the most significant risk elements of your contracts (e.g., actual traffic volume, environmental compliance, hazardous materials, changes in law, force majeure) and how they are either mitigated or managed.
   2. How are risk allocation and the transference of risk between parties determined?

Project Procurement

10. Please describe the procedures of a competitive solicitation, evaluation, and selection of a developer or private partner.
    1. How do various solicitation procedures and contract provisions successfully attract investors?
    2. How much of the project scope do you define and how much innovation do you allow the private sector to initiate during procurement?
    3. What are your criteria and weighting factors for procurements and how are they determined?
    4. d. to adequately evaluate public-private partnerships?
    5. Do you engage planning and financial partners for groups of projects (e.g., corridors or ring roads) rather than single projects?

Project Agreement/Contract

11. Please describe the significant contract terms and conditions and whether they are dictated in the solicitation or negotiated among the parties.
    1. What policies and procedures have you developed to reduce the negotiation process?
    2. What is the process for contract modifications and how do they vary between projects?
    3. Do you use performance or prescriptive specifications for pavements and structures?

Project Operation, Maintenance, and Closeout

12. Please describe the performance standards you measure and monitor.
    1. What performance standards do you include in your procurement documents?
    2. What is the organizational structure for project monitoring (e.g., independent engineers)?
    3. Are performance points used to track the progress of the concessionaire? If so, how does the system work?
    4. What are the usual remedies for poor service? Have you defaulted a concessionaire for poor service?
    5. What are your dispute resolution or arbitration procedures?
13. Please describe your handback requirements at the end of the concession.
    1. What are the evaluation and rehabilitation requirements at the time of handback?

Overall Program Performance

14. Please describe how your project delivery process evolved over time.
    1. How has your public-private partnership program become integrated into your overall transportation planning process?
    2. Have you conducted comprehensive studies that compare the performance of your traditional projects versus your public-private partnership projects?
    3. What have you changed in your processes, procedures, and requirements and why?

Benefits, Challenges, and Lessons Learned

15. Please provide any general lessons learned and tips for success as public-private partnerships begin to grow in the United States.
    1. What is your definition of a successful concession during the term and after the term?