As of January 1, 2017, the successful and efficient program that allows the state of California and other local government entities to build public works projects through public-private partnerships (P3) will expire. In an era of limited resources, it is critical that we maximize private investment to deliver infrastructure projects that will well serve Californians across the state.
Fortunately, Assembly Member Nazarian is authoring legislation – AB 2742 – to extend the P3 program, ensuring California will continue to be able to retain the flexibility to work with the private sector to accelerate the delivery of public works projects.
Infrastructure investment can play a strong role in job creation and economic development for California. A 2012 report by the Bay Area Council Economic Institute estimates that every $1 billion in infrastructure investment creates approximately 13,468 jobs.
That same report estimates that a successful public-private partnership project typically results in a 15% to 30% life-cycle cost savings. P3 projects most often have a faster procurement process, putting projects on a stable and efficient timetable, and such partnerships demonstrate a responsibility to the taxpayer by appropriately transferring risk to the private partner.
P3 financing is a demonstrably successful mechanism for transportation projects; and as California confronts its daunting transportation financing problems, it is imperative the state and local governments preserve viable options for funding projects.
ACEC California is proud to support Assembly Member Nazarian’s legislation. Read our support letter to Assembly Member Nazarian here.