CONFIDENTIALwww.mcguirewoodsconsulting.com

Christopher D. LloydSMPS – Southeastern Regional

ConferenceMarch 11, 2009

PPP 101: A Primer on Public Private Partnerships

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What is a PPP?

• Another way for public bodies to procure needed infrastructure and services

• Qualifications based, best value selection process• Often allows for joint development of project scope• Provides opportunities for non-public sources of

revenue• Does not compromise quality or safety

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History of PPP

• Colonial waterworks and turnpikes• Low-bid emerged as preferred contracting method

by 1920s• Design-build and C/M practices emerge in private

sector by 1970s• “One off” entities – such as authorities – used to

skirt procurement and financing requirements• Virginia pioneers legislative framework approach –

1995 for PPTA, 2002 for PPEA

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Why a PPP?

• Shifts risk from the public to the private sector• Provides budget certainty• Staff augmentation• Tight budgets/limited ability to issue more debt• Limit change orders• Opportunity for creative project approaches• Use process to seek public buy-in

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PPP Implementation – the Virginia PPEA• Allows for solicited and unsolicited proposals• Statute requires written finding of public benefit

before departing from traditional procurement methods

• Begins with conceptual proposal where qualifications and public benefit are more important selection factors

• Shortlisted teams proceed to detailed proposals• Final team is selected and comprehensive

agreement is negotiated

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PPP Project Examples

• Fredericksburg parking garage• Virginia medium security prisons• Southampton water and sewer• Stafford Learning Village• Kingstowne Library• 495 Capital Beltway HOT Lanes

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The Role of the Public in a PPP

• Proposals and all agreements are public• Public hearing must be held• Education of public about the benefits of the PPP• Competing projects may have a higher priority in

the mind of the public

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Marketing a PPP

• Another tool in the toolbox – not a backroom deal• Explain inclusive nature of the process• Polling/focus groups/public forums• Development of promotional materials

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Marketing a PPP

• http://virginiahotlanes.com• http://www.webtidepartners.com• http://www.28freeway.com

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Why PPP Matters to You

• Emerging as trend in how public infrastructure is procured

• Creates significant marketing and strategic PR opportunities

• “Selling” of a PPP is now accepted as vital by developers

• Many Southeastern states are adopting PPP legislation

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