History of Public Private Partnerships in Washington State. Tacoma Narrows Bridge. 1940 - “Galloping Gertie” original span collapses in wind storm. 1950 - Old span replaced by new bridge. 1993 - Population growth triggers call for an additional span.
1940 - “Galloping Gertie” original span collapses in wind storm.
1950 - Old span replaced by new bridge.
1993 - Population growth triggers call for an additional span.
Legislature enacts initial P3 law identifying five possible pilot projects. Second Tacoma span is chosen. (Bechtel-Kiewit)
Final EIS filed, but lawsuit invalidates financing scheme.
P3 changed to D/B
and legislature appropriates funding.
This prompts review of state P3 statute.
It is estimated that toll-payers will save at least $336 million over 24 years. But there is a price associated with these savings: more risk.
Original TNB “Private Public Partnership”: 63-20 financing
Traditional State Bond Financing**
Total Borrowing $794 m
Total Borrowing$711 m
Mortgage Statement: Total Principal and Interest Over 34 Years Estimated at $1.908 billion*
Mortgage Statement: Total Principal and Interest Over 24 Years Estimated at $1.572 billion
*United Infrastructure Washington (UIW) Preliminary Financing Plan dated January 25, 2001.
**Seattle Northwest Securities, assumptions as of May 10, 2005 (interest rates as of 5/10/2005 + 50 BP with CABs issues 7-9).
Design / Build Takes Off
Gas-tax increases of 14.5 cents in 2003-2005 provides massive project rollout.
Consultant design work increases from
15% to 54% of all projects by dollar value.
P3 Laws Revised
Transportation Innovative Partnership Act (TIP) - RCW 47.29
The private consultants were representatives of AECOM, Nossamon, and KPMG.
For more information contact:
Vince Oliveri, PTE 17