Cover Image

Not for Sale

View/Hide Left Panel
Click for next page ( 46

The National Academies | 500 Fifth St. N.W. | Washington, D.C. 20001
Copyright © National Academy of Sciences. All rights reserved.
Terms of Use and Privacy Statement

Below are the first 10 and last 10 pages of uncorrected machine-read text (when available) of this chapter, followed by the top 30 algorithmically extracted key phrases from the chapter as a whole.
Intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text on the opening pages of each chapter. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

Do not use for reproduction, copying, pasting, or reading; exclusively for search engines.

OCR for page 45
PLENARY SESSION 4 International Panel Brian Howells, Halcrow, Inc. (Moderator) Robert Bain, RBconsult Ian Scholey, Parsons Brinckerhoff Zongzhi Li, Illinois Institute of Technology B rian Howells of Halcrow, Inc., moderated Plenary be resolved when a champion helps make things come Session 4, in which experts from Europe and Asia together. Experience in Europe has shown that hospital shared their views on the potential transferability P3s are not always affordable in a fast-paced sector with of successful international strategies to transportation large capital costs. In some cases hospital projects may be infrastructure investment in the United States. The follow- gold plated. In the end, planning is driven by procurement, ing were among the key questions for consideration: How but most observers believe that with health care it should should delivery and funding mechanisms be determined be the other way around. There is even more risk with and used, and under what circumstances? What are the rail projects because of their size and complexity. There is critical success factors? Specific issues related to project significant geological risk, and there are multiple intersec- delivery methods and risk allocation were also addressed. tions with their parties, who are not obliged to help. The P3 experience in these three sectors indicates that the most successful have involved stand-alone projects that are sup- Lessons Learned from European Public ported both operationally and institutionally. Private Partnership Infrastructure Projects The highway sector is a particularly good fit for P3 procurements. They are effective because they lock in Robert Bain of RBconsult presented research prepared future maintenance needs and obligations. A number by the European Investment Bank (EIB), which is the of risks must be managed, including unforeseen ground largest lender to publicprivate partnership (P3) projects conditions. Construction risks may be overemphasized, in the world. EIB was created in 1958 and is the Euro- and operational risks are perhaps of greater concern to pean Union's (EU's) long-term lending institution. The lenders. Highways are likely to remain at the forefront of bank is owned by the EU's member states and supports P3 involvement in Europe. EU policies and priority objectives such as European Mr. Bain then turned to the subject of measuring the integration through its financing operations. success of P3 highway performance. This often involves Mr. Bain interviewed senior staff at the bank, revisiting policy objectives. Many objectives may have reviewed project documentation, and distilled lessons been muddled and contradictory or justified retrospec- learned from recent P3 activity in Europe. EIB has sup- tively, and some may have evolved over time. Three key ported more than 200 P3 projects. Highways, schools, benefits of highway P3s are fixed-price asset delivery, the hospitals, and rail developments are among them. locking in of high-quality maintenance, and provision of With schools, designbuild procurement is often used, value for money. P3s have also brought new technolo- and risk allocation is evolving. This has been largely suc- gies and commercial discipline to the highway sector. cessful, but some issues, such as school closings, were In Europe as in the United States, there are two types not addressed in contract documents. These issues can of highway P3 arrangements: those based on user-paid 35