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NATIONAL
NCHRP SYNTHESIS 391
COOPERATIVE
HIGHWAY
RESEARCH
PROGRAM
Public Sector Decision Making
for PublicPrivate Partnerships
A Synthesis of Highway Practice
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TRANSPORTATION RESEARCH BOARD 2009 EXECUTIVE COMMITTEE*
OFFICERS
Chair: Debra L. Miller, Secretary, Kansas DOT, Topeka
Vice Chair: Adib K. Kanafani, Cahill Professor of Civil Engineering, University of California, Berkeley
Executive Director: Robert E. Skinner, Jr., Transportation Research Board
MEMBERS
J. BARRY BARKER, Executive Director, Transit Authority of River City, Louisville, KY
ALLEN D. BIEHLER, Secretary, Pennsylvania DOT, Harrisburg
JOHN D. BOWE, President, Americas Region, APL Limited, Oakland, CA
LARRY L. BROWN, SR., Executive Director, Mississippi DOT, Jackson
DEBORAH H. BUTLER, Executive Vice President, Planning, and CIO, Norfolk Southern Corporation, Norfolk, VA
WILLIAM A.V. CLARK, Professor, Department of Geography, University of California, Los Angeles
DAVID S. EKERN, Commissioner, Virginia DOT, Richmond
NICHOLAS J. GARBER, Henry L. Kinnier Professor, Department of Civil Engineering, University of Virginia, Charlottesville
JEFFREY W. HAMIEL, Executive Director, Metropolitan Airports Commission, Minneapolis, MN
EDWARD A. (NED) HELME, President, Center for Clean Air Policy, Washington, DC
WILL KEMPTON, Director, California DOT, Sacramento
SUSAN MARTINOVICH, Director, Nevada DOT, Carson City
MICHAEL D. MEYER, Professor, School of Civil and Environmental Engineering, Georgia Institute of Technology, Atlanta
MICHAEL R. MORRIS, Director of Transportation, North Central Texas Council of Governments, Arlington
NEIL J. PEDERSEN, Administrator, Maryland State Highway Administration, Baltimore
PETE K. RAHN, Director, Missouri DOT, Jefferson City
SANDRA ROSENBLOOM, Professor of Planning, University of Arizona, Tucson
TRACY L. ROSSER, Vice President, Corporate Traffic, Wal-Mart Stores, Inc., Bentonville, AR
ROSA CLAUSELL ROUNTREE, Consultant, Tyrone, GA
HENRY G. (GERRY) SCHWARTZ, JR., Chairman (retired), Jacobs/Sverdrup Civil, Inc., St. Louis, MO
C. MICHAEL WALTON, Ernest H. Cockrell Centennial Chair in Engineering, University of Texas, Austin
LINDA S. WATSON, CEO, LYNXCentral Florida Regional Transportation Authority, Orlando
STEVE WILLIAMS, Chairman and CEO, Maverick Transportation, Inc., Little Rock, AR
EX OFFICIO MEMBERS
THAD ALLEN (Adm., U.S. Coast Guard), Commandant, U.S. Coast Guard, Washington, DC
REBECCA M. BREWSTER, President and COO, American Transportation Research Institute, Smyrna, GA
PAUL R. BRUBAKER, Research and Innovative Technology Administrator, U.S.DOT
GEORGE BUGLIARELLO, President Emeritus and University Professor, Polytechnic Institute of New York University, Brooklyn;
Foreign Secretary, National Academy of Engineering, Washington, DC
SEAN T. CONNAUGHTON, Maritime Administrator, U.S.DOT
CLIFFORD C. EBY, Acting Administrator, Federal Railroad Administration, U.S.DOT
LEROY GISHI, Chief, Division of Transportation, Bureau of Indian Affairs, U.S. Department of the Interior, Washington, DC
EDWARD R. HAMBERGER, President and CEO, Association of American Railroads, Washington, DC
JOHN H. HILL, Federal Motor Carrier Safety Administrator, U.S.DOT
JOHN C. HORSLEY, Executive Director, American Association of State Highway and Transportation Officials, Washington, DC
CARL T. JOHNSON, Pipeline and Hazardous Materials Safety Administrator, U.S.DOT
DAVID KELLY, Acting Administrator, National Highway Traffic Safety Administration, U.S.DOT
SHERRY E. LITTLE, Acting Administrator, Federal Transit Administration, U.S.DOT
THOMAS J. MADISON, JR., Administrator, Federal Highway Administration, U.S.DOT
WILLIAM W. MILLAR, President, American Public Transportation Association, Washington, DC
ROBERT A. STURGELL, Acting Administrator, Federal Aviation Administration, U.S.DOT
ROBERT L. VAN ANTWERP (Lt. Gen., U.S. Army), Chief of Engineers and Commanding General, U.S. Army Corps of Engineers,
Washington, DC
*Membership as of January 2009.
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NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM
NCHRP SYNTHESIS 391
Public Sector Decision Making
for PublicPrivate Partnerships
A Synthesis of Highway Practice
CONSULTANTS
JEFFREY N. BUXBAUM
and
IRIS N. ORTIZ
Cambridge Systematics, Inc.
Cambridge, Massachusetts
S UBJECT A REAS
Planning and Administration
Research Sponsored by the American Association of State Highway and Transportation Officials
in Cooperation with the Federal Highway Administration
TRANSPORTATION RESEARCH BOARD
WASHINGTON, D.C.
2009
www.TRB.org
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NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM NCHRP SYNTHESIS 391
Systematic, well-designed research provides the most effective Project 20-5 (Topic 39-06)
approach to the solution of many problems facing highway ISSN 0547-5570
administrators and engineers. Often, highway problems are of local ISBN 978-0-309-09829-8
interest and can best be studied by highway departments Library of Congress Control No. 2008911218
individually or in cooperation with their state universities and © 2009 Transportation Research Board
others. However, the accelerating growth of highway transportation
develops increasingly complex problems of wide interest to
highway authorities. These problems are best studied through a
COPYRIGHT PERMISSION
coordinated program of cooperative research.
In recognition of these needs, the highway administrators of the Authors herein are responsible for the authenticity of their materials and for
American Association of State Highway and Transportation obtaining written permissions from publishers or persons who own the
Officials initiated in 1962 an objective national highway research copyright to any previously published or copyrighted material used herein.
program employing modern scientific techniques. This program is Cooperative Research Programs (CRP) grants permission to reproduce
material in this publication for classroom and not-for-profit purposes.
supported on a continuing basis by funds from participating
Permission is given with the understanding that none of the material will be
member states of the Association and it receives the full cooperation used to imply TRB, AASHTO, FAA, FHWA, FMCSA, FTA, or Transit
and support of the Federal Highway Administration, United States Development Corporation endorsement of a particular product, method, or
Department of Transportation. practice. It is expected that those reproducing the material in this document
The Transportation Research Board of the National Academies for educational and not-for-profit uses will give appropriate acknowledgment
was requested by the Association to administer the research of the source of any reprinted or reproduced material. For other uses of the
program because of the Board's recognized objectivity and material, request permission from CRP.
understanding of modern research practices. The Board is uniquely
suited for this purpose as it maintains an extensive committee
structure from which authorities on any highway transportation NOTICE
subject may be drawn; it possesses avenues of communications and
cooperation with federal, state, and local governmental agencies, The project that is the subject of this report was a part of the National
universities, and industry; its relationship to the National Research Cooperative Highway Research Program conducted by the Transportation
Research Board with the approval of the Governing Board of the National
Council is an insurance of objectivity; it maintains a full-time
Research Council. Such approval reflects the Governing Board's judgment that
research correlation staff of specialists in highway transportation the program concerned is of national importance and appropriate with respect
matters to bring the findings of research directly to those who are in to both the purposes and resources of the National Research Council.
a position to use them. The members of the technical committee selected to monitor this project and
The program is developed on the basis of research needs to review this report were chosen for recognized scholarly competence and
identified by chief administrators of the highway and transportation with due consideration for the balance of disciplines appropriate to the project.
departments and by committees of AASHTO. Each year, specific The opinions and conclusions expressed or implied are those of the research
areas of research needs to be included in the program are proposed agency that performed the research, and, while they have been accepted as
to the National Research Council and the Board by the American appropriate by the technical committee, they are not necessarily those of the
Association of State Highway and Transportation Officials. Transportation Research Board, the National Research Council, the American
Association of State Highway and Transportation Officials, or the Federal
Research projects to fulfill these needs are defined by the Board, and
Highway Administration, U.S. Department of Transportation.
qualified research agencies are selected from those that have Each report is reviewed and accepted for publication by the technical
submitted proposals. Administration and surveillance of research committee according to procedures established and monitored by the
contracts are the responsibilities of the National Research Council Transportation Research Board Executive Committee and the Governing
and the Transportation Research Board. Board of the National Research Council.
The needs for highway research are many, and the National
Cooperative Highway Research Program can make significant
contributions to the solution of highway transportation problems of
mutual concern to many responsible groups. The program,
however, is intended to complement rather than to substitute for or
duplicate other highway research programs.
Published reports of the
NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM
are available from:
Transportation Research Board
Business Office
500 Fifth Street, NW
NOTE: The Transportation Research Board of the National Academies, the
Washington, DC 20001
National Research Council, the Federal Highway Administration, the American
Association of State Highway and Transportation Officials, and the individual and can be ordered through the Internet at:
states participating in the National Cooperative Highway Research Program do http://www.national-academies.org/trb/bookstore
not endorse products or manufacturers. Trade or manufacturers' names appear
herein solely because they are considered essential to the object of this report. Printed in the United States of America
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The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished schol-
ars engaged in scientific and engineering research, dedicated to the furtherance of science and technology
and to their use for the general welfare. On the authority of the charter granted to it by the Congress in
1863, the Academy has a mandate that requires it to advise the federal government on scientific and techni-
cal matters. Dr. Ralph J. Cicerone is president of the National Academy of Sciences.
The National Academy of Engineering was established in 1964, under the charter of the National Acad-
emy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration
and in the selection of its members, sharing with the National Academy of Sciences the responsibility for
advising the federal government. The National Academy of Engineering also sponsors engineering programs
aimed at meeting national needs, encourages education and research, and recognizes the superior achieve-
ments of engineers. Dr. Charles M. Vest is president of the National Academy of Engineering.
The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the
services of eminent members of appropriate professions in the examination of policy matters pertaining
to the health of the public. The Institute acts under the responsibility given to the National Academy of
Sciences by its congressional charter to be an adviser to the federal government and, on its own initiative,
to identify issues of medical care, research, and education. Dr. Harvey V. Fineberg is president of the
Institute of Medicine.
The National Research Council was organized by the National Academy of Sciences in 1916 to associate
the broad community of science and technology with the Academys í p urposes of furthering knowledge and
advising the federal government. Functioning in accordance with general policies determined by the Acad-
emy, the Council has become the principal operating agency of both the National Academy of Sciences
and the National Academy of Engineering in providing services to the government, the public, and the scien-
tific and engineering communities. The Council is administered jointly by both the Academies and the Insti-
tute of Medicine. Dr. Ralph J. Cicerone and Dr. Charles M. Vest are chair and vice chair, respectively,
of the National Research Council.
The Transportation Research Board is one of six major divisions of the National Research Council. The
mission of the Transportation Research Board is to provide leadership in transportation innovation and
progress through research and information exchange, conducted within a setting that is objective, interdisci-
plinary, and multimodal. The Board's varied activities annually engage about 7,000 engineers, scientists, and
other transportation researchers and practitioners from the public and private sectors and academia, all of
whom contribute their expertise in the public interest. The program is supported by state transportation depart-
ments, federal agencies including the component administrations of the U.S. Department of Transportation,
and other organizations and individuals interested in the development of transportation. www.TRB.org
www.national-academies.org
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NCHRP COMMITTEE FOR PROJECT 20-5 COOPERATIVE RESEARCH PROGRAMS STAFF
CHRISTOPHER W. JENKS, Director, Cooperative Research
CHAIR Programs
GARY D. TAYLOR, CTE Engineers CRAWFORD F. JENCKS, Deputy Director, Cooperative Research
Programs
MEMBERS NANDA SRINIVASAN, Senior Program Officer
KATHLEEN S. AMES, Illinois DOT EILEEN DELANEY, Director of Publications
STUART D. ANDERSON, Texas A&M University
CYNTHIA J. BURBANK, PB Americas, Inc. NCHRP SYNTHESIS STAFF
LISA FREESE, Scoot County (MN) Public Works Division STEPHEN R. GODWIN, Director for Studies and Special Programs
MALCOLM T. KERLEY, Virginia DOT JON M. WILLIAMS, Associate Director, IDEA and Synthesis Studies
RICHARD D. LAND, California DOT GAIL STABA, Senior Program Officer
JAMES W. MARCH, Federal Highway Administration DONNA L. VLASAK, Senior Program Officer
MARK A. MAREK, Texas DOT DON TIPPMAN, Editor
JOHN M. MASON, JR., Auburn University CHERYL KEITH, Senior Program Assistant
ANANTH PRASAD, HNTB Corporation
ROBERT L. SACK, New York State DOT TOPIC PANEL
FRANCINE SHAW-WHITSON, Federal Highway Administration KOME AJISE, California Department of Transportation
LARRY VELASQUEZ, New Mexico DOT DEBORAH BROWN, Virginia Department of Transportation
KAREN J. HEDLUND, Nossaman, Guthner, Knox, & Elliot, LLP,
Arlington, VA
FHWA LIAISON DENNIS HOULIHAN, American Federation of State, County,
WILLIAM ZACCAGNINO and Municipal Employees
ART JAMES, Oregon Department of Transportation
TRB LIAISON MARTINE A. MICOZZI, Transportation Research Board
STEPHEN F. MAHER ANTHONY PAGANO, University of IllinoisChicago
STEVE SIMMONS, Texas Department of Transportation
KEN WARBRITTON, Missouri Department of Transportation
PORTER WHEELER, Maryland Transportation Authority
KATHERINE A. PETROS, Federal Highway Administration (Liaison)
MICHAEL T. SAUNDERS, Federal Highway Administration
(Liaison)
Cover figure: Chicago Skyway, looking southeast across
Calumet River, showing underside of main span and river piers.
ACKNOWLEDGMENTS
The authors would like to thank Alex Linthicum, who conducted
most of the literature review for this project.
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FOREWORD Highway administrators, engineers, and researchers often face problems for which infor-
mation already exists, either in documented form or as undocumented experience and prac-
tice. This information may be fragmented, scattered, and unevaluated. As a consequence,
full knowledge of what has been learned about a problem may not be brought to bear on its
solution. Costly research findings may go unused, valuable experience may be overlooked,
and due consideration may not be given to recommended practices for solving or alleviat-
ing the problem.
There is information on nearly every subject of concern to highway administrators and
engineers. Much of it derives from research or from the work of practitioners faced with
problems in their day-to-day work. To provide a systematic means for assembling and eval-
uating such useful information and to make it available to the entire highway community,
the American Association of State Highway and Transportation Officials--through the
mechanism of the National Cooperative Highway Research Program--authorized the
Transportation Research Board to undertake a continuing study. This study, NCHRP Proj-
ect 20-5, "Synthesis of Information Related to Highway Problems," searches out and syn-
thesizes useful knowledge from all available sources and prepares concise, documented
reports on specific topics. Reports from this endeavor constitute an NCHRP report series,
Synthesis of Highway Practice.
This synthesis series reports on current knowledge and practice, in a compact format,
without the detailed directions usually found in handbooks or design manuals. Each report
in the series provides a compendium of the best knowledge available on those measures
found to be the most successful in resolving specific problems.
PREFACE Public sector agencies are increasingly exploring the use of publicprivate partnerships
By Jon M. Williams to increase funding available for infrastructure improvement. This study examines the infor-
Program Director, mation that is available to properly evaluate the benefits and risks associated with allowing
Transportation the private sector to have a greater role in financing and developing highway infrastructure.
Research Board The report will be of interest to public sector decision makers seeking to leverage or sup-
plement traditional sources of funding with private investment and other participation.
Information for the study was gathered through a literature review, a survey of U.S. state
departments of transportation and Canadian ministries of transportation, and a second sur-
vey of other stakeholders. Supplemental information was gathered through interviews.
Jeffrey N. Buxbaum and Iris N. Ortiz of Cambridge Systematics, Inc., collected and syn-
thesized the information and wrote the report. The members of the topic panel are acknowl-
edged on the preceding page. This synthesis is an immediately useful document that records
the practices that were acceptable within the limitations of the knowledge available at the
time of its preparation. As progress in research and practice continues, new knowledge will
be added to that now at hand.
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CONTENTS
1 SUMMARY
5 CHAPTER ONE INTRODUCTION
Methodology, 5
Report Organization, 6
7 CHAPTER TWO PUBLICPRIVATE PARTNERSHIP
DEFINITION AND HISTORY
Definition of PublicPrivate Partnerships, 7
Evolution of PublicPrivate Partnerships in the United States, 9
PublicPrivate Partnerships Participants, 10
11 CHAPTER THREE PUBLICPRIVATE PARTNERSHIPS
DECISION-MAKING TOPICS
Project Selection and Delivery, 11
Transparency, 24
Terms of PublicPrivate Partnership Agreements, 28
39 CHAPTER FOUR CONCLUSIONS
42 REFERENCES
46 BIBLIOGRAPHY
51 GLOSSARY OF TERMS, ABBREVIATIONS, AND ACRONYMS
53 APPENDIX A STATE DOT SURVEY QUESTIONNAIRE
65 APPENDIX B STATE DOT SURVEY SUMMARIES
99 APPENDIX C OTHER INDIVIDUALS/INTEREST GROUPS
SURVEY QUESTIONNAIRE
102 APPENDIX D OTHER INDIVIDUALS/INTEREST GROUPS
SURVEY SUMMARIES
128 APPENDIX E CASE STUDIES
