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Public Works & Utilities


ARRA-funded construction and public private partnerships

ARRA-funded construction and public private partnerships

Public-private partnerships are being used as a tool to help governments balance their budgets, and ARRA funding is helping pay for a road and bridge project in Marion, Ohio — all in the the second-half 2011 Keating report.
  • Written by Michael Keating ([email protected])
  • 20th July 2011

Editor’s note: The following is the fifth of a six-part series on government budgets and government spending that comprise the Keating Report mid-year 2011 forecast. The topics we are covering include: federal budgets, transportation projects, state tax revenue, local government budget trends, ARRA-funded construction and government spending.

Public-private partnerships (P3) are coming to the rescue as states and other governments wrestle with fiscal crunches. P3 agreements give governments the money they need to rehabilitate infrastructures, improve transportation, construct new facilities and finance other projects they cannot afford.

P3 activity “will accelerate dramatically in the last half of 2011,” says Frank Rapoport, a senior partner and chair of the Global Infrastructure and Public-Private Partnerships practice at the Washington-based McKenna Long & Aldridge law firm. “New states will emerge with legislative authority to conduct P3s with state infrastructure assets, including Ohio, Indiana, Pennsylvania, Connecticut and perhaps New Jersey and New York (although probably following in 2012),” he says. “Other states (and municipalities) including Georgia, Virginia, Texas, Florida and California have P3 deals in the works involving new high occupancy/toll lanes, new bridges and even social infrastructure like courthouses, state office buildings, jails, and stadiums. All of this will mean more work for the construction and engineering industries.”

One form of P3, long-term leases of publicly owned parking facilities, are occurring at a rapid pace, says Michael Benouaich, a service area manager for public sector P3 advisory services at New York-based Parsons Brinckerhoff (PB). Benouaich’s analysis shows parking facility P3s produce wide variances in parking space asset values, ranging from $5,500 to $32,200 per parking space. PB is a planning, engineering and construction management organization.

ARRA-funded construction

A variety of funding sources, including ARRA stimulus dollars, are paying for the Marion Northwest Industrial Connector project in Marion, Ohio. Once completed, the $17 million project will link U.S. 95 West to U.S. 23 and Marion-Williamsport Road with a 2.5-mile road. The new route will alleviate heavy truck traffic carrying hazardous cargo through downtown Marion, decrease emergency response time and provide economic development opportunities for future expansion of Marion’s industrial section.

A CON/SPAN bridge system from West Chester, Ohio-based CONTECH Construction Products is being installed in the project. Precast headwalls and wingwalls are being used to provide stream crossings with a natural bottom. CON/SPAN’s system was chosen for the project because of its clear span, economical design and quick installation.

Monies from the following sources are paying for the project: ARRA; Ohio Rail Development Commission; Ohio Department of Development; Ohio Public Works; Marion, Ohio; Marion, Ohio, County Commissioners; and Marion, Ohio, County Engineer’s office. The project is scheduled for completion in 2012.

View additional installments of our second-half 2011 forecast as well as the January 2011 forecast.

Related Stories

  • Georgia county joins water treatment partnership
  • Pace of government construction will ease in 2011
  • Adapting to lower tax revenues: The TBC model
  • ARRA funds help communities reduce energy consumption
  • 2011 Keating Report on government budgets and spending
  • 2nd half 2010 Keating Report on government budgets and spending
  • 2010 Keating Report on government budgets and spending

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