“Managed lane projects have become an important tool for addressing congestion on the nation’s highway system. These projects incorporate the construction of new highways or converting existing lanes to enhance traffic management. Historically, these projects have been developed by public sector entities using design-bid-build procurement. Recently, a lack of public funding and other factors have led many jurisdictions to consider public-private partnerships (‘PPP’) for these projects. Managing these PPP projects requires parties to meet unique public policy objectives, deliver value for taxpayers and toll customers, and meet the financial requirements of developers and investors.
KPMG’s infrastructure advisory team has advised on almost all of the completed PPP managed lanes projects in the U.S. market, and our successful experience demonstrates that the right blend of private sector creativity, innovation and risk transfer can deliver successful solutions. KPMG has utilized a multi-step evaluation and development framework to deliver results in these complex projects.
Key lessons learned for Stakeholders include:
- Establish a clear decision framework early
- Create innovative financial structures
- Incentivize high performance infrastructure”