Virginia’s vaunted public-private partnership program should be leaner and more efficient, which would save millions of taxpayer dollars and potentially create thousands of new jobs, according to an independent review.
Consulting firm KPMG recently submitted to Gov. Bob McDonnell and Secretary of Transportation Sean Connaughton a preliminary review of the state’s public-private transportation program.
The report says “major changes” are needed to streamline the state’s practices. The current public-private program, the report says, lacks a standardized bidding process, and involves too many state staff members with “competing priorities.”
McDonnell said he agreed with the report’s assessment.
“Lengthy processes, unclear deadlines and red tape still stand in the way of achieving the full benefits” of the state’s public-private partnerships, he said.
Virginia is frequently cited as a national leader in public-private transportation projects. The state has partnered — or plans to partner — with private companies on roughly a dozen major construction projects, including building high occupancy toll lanes on the Capital Beltwayand Interstate 95/395, and the Dulles Metrorail extension.
McDonnell said reforming the system would mean taxpayers wouldn’t have to foot the bill for as many cost overruns. He also said implementing KPMG’s recommendations would lead to new public-private projects — projects that otherwise would never happen — with the potential to create “thousands of jobs in the construction and road building materials industry.”
The KPMG report calls for the creation of a public-private program office and chief to oversee the state’s dealings with the private sector, among other recommendations.
Connaughton said the state’s public-private program would benefit from KPMG’s recommendations.
“Improving this process will allow us to reap millions of savings from a more efficient system,” he said.
Virginia’s public-private transportation projects
» Completed projects: Work on Route 288 and the Pocahontas Parkway (Route 895) near Richmond, and Route 199 corridor improvements near Jamestown
» Active projects: Construction of HOT lanes on the Capital Beltway; work on the Coalfields Expressway (U.S. Route 121); widening of Route 58 near Hillsville; the Downtown Tunnel/Midtown Tunnel/Martin Luther King Freeway construction near Norfolk; adding six interchanges to Route 28; and Dulles Metrorail construction
» Proposed projects: U.S. Route 460 corridor improvements, and construction of HOT lanes on Interstates 95 and 395
McDonnell commissioned the independent analysis earlier this year. KPMG’s review examined the state’s public-private partnership program in terms of leadership structure, project screening, service delivery and funding sources. KPMG also compared Virginia’s program with similar public-private programs in Georgia and Texas.
The firm expects to complete its review later this year. The state plans to implement a first batch of reforms later this summer, which likely would include the establishment of a new public-private program office, as well as a standardized bidding process.
