What are the benefits of public-private partnerships?
By utilizing private capital to help finance, design, build, maintain, and/or operate much-needed public transportation infrastructure, Nevadans receive enhanced mobility, quality of life, commerce, and transportation safety that may not otherwise be funded.
The private partner takes primary responsibility for timely delivery, finance, design, construction, operation, and/or maintenance of a quality project and assumes greater financial risks, thus lifting some of these potential burdens from taxpayers. Stipulations require construction be completed within defined timeframes and costs, helping shield taxpayers from cost overruns and delays. Strict requirements ensure proper stewardship of the public facility to see it returned to the state in good condition when the contract ends.
How can public-private partnerships benefit different areas of the state, from urban to rural?
All areas of Nevada can benefit. Gridlock in urban areas such as Las Vegas can be lessened through new toll lanes and facilities designed, financed, constructed, operated, and/or maintained by private partners. Economy and job-boosting development in rural areas, as well as general roadway safety, connectivity and mobility, can be advanced through non-tolled transportation enhancements such as new roads, freeway interchanges and lighting improvements. Leveraging limited public funds and potential revenue sharing from toll facilities allow NDOT to do more with less, implementing projects faster than simply relying on constrained public funding.
Who would pay for transportation infrastructure built through public-private partnerships?
Currently, NDOT does not have the funds to build many needed transportation projects. Public-private partnerships allow private partners to potentially provide much of the initial financing to design, build, operate and/or maintain needed transportation improvements that would not otherwise be built. For toll facilites, private partners could cover all or part of the costs in return for access to future project profits generated through tolling. Other approaches for toll facilities allow the state to retain toll facility profits and pay the private partner a set amount for a period of years based on the toll facility’s performance. Potentially, the state can participate in the revenue from a toll facility, creating a new funding source for future transportation needs.
Would facilities built by public-private partnership still be public facilities?
Any public-private partnership transportation facility would be owned by NDOT as a public highway for public use. Ownership will always reside with the public and the State of Nevada.
Do all PPPs involve tolling?
No. There are many different forms of public-private partnerships. Only a portion of these partnerships involve tolling. It is the authority to enter into tolling-related public-private partnerships that is needed to move Nevada forward.
Who could use new toll lanes, roads and facilities?
Toll lanes, roads, and facilities can be free of charge for transit buses and emergency vehicles. For tolled managed lane projects, pre-registered carpools could ride free or at a discounted rate while other commuters can choose to use the lanes for a fast, reliable commute by paying a toll.
By providing a new transportation option, toll facilities can also help free up existing, general purpose lanes and roads, providing a more efficient, less congested, and safer drive for even those not using the toll facility.
Who would have oversight of the charges on toll lanes, roads or facilities?
NDOT and the State of Nevada Transportation Board would have oversight.