7.22 VIRGINIA PUBLIC-PRIVATE TRANSPORTATION ACT
7.2201 Purpose. The Public-Private Transportation Act of 1995 (PPTA) 566 permits state and local governmental entities to enter into agreements with private entities for the acquisition, construction, improvement, maintenance, and operation of qualifying transportation facilities. 567 The intent of the PPTA is to develop or operate those facilities in a more timely, efficient, or economical fashion and to encourage private entities to invest in the Commonwealth in ways that facilitate the development and operation of transportation facilities. 568 The PPTA is also intended to provide public and private entities the greatest possible flexibility in contracting with each other for transportation-related projects. 569 To a great extent, the private entity under the PPTA assumes the role of the public entity in planning, designing, and operating public facilities and charging user fees for such facilities, such as tolls on toll roads. 570 Taking on this last role is one of the unique and sometimes controversial aspects of the PPTA. 571
PPTA projects can include roads, bridges, tunnels, overpasses, ferries, airports, mass transit facilities, vehicle parking facilities, port facilities, or similar commercial facilities used for the transportation of persons or goods, as well as related structures or property needed for the operation of the facility. 572 Past PPTA projects include the Dulles Greenway and I-95 Express Lanes in northern Virginia and the Route 895 Connector in Richmond.
7.2202 Initiating a PPTA Project. PPTA projects may be initiated by either the public or private entity. 573 If the private entity submits an unsolicited proposal, it must contain certain information, such as the project team and its qualifications, topographic maps, descriptions of the project, a
[Page 295]
statement of the contractor's general plans for developing or operating the facility, schedules for obtaining all necessary permits and approvals, the plans for financing the project, and other financial and cost information related to the project. 574 The public entity may approve a PPTA project if it determines that the project serves a public purpose. Such a determination requires that (i) a public need or benefit is derived from the project, (ii) the estimated cost is reasonable, and (iii) the proposal will result in the timely design, construction, or renovation of the project. 575
7.2203 PPTA Procedures. The responsible public entity must adopt guidelines for reviewing and accepting PPTA proposals. 576 The Commonwealth has published an Implementation Manual and Guidelines for PPTA projects. 577 Although the VPPA does not apply to PPTA projects, 578 procurements must be conducted by using competitive sealed bidding or competitive negotiation as defined in the VPPA. 579 In general, PPTA projects are developed, implemented, and administered by the Virginia Office of Public-Private Partnerships (Virginia P3 or VAP3) in conjunction with state transportation agencies. 580
7.2204 Project Identification, Screening, and Development.
A. Identification. Potential PPTA projects are generally identified by transportation agencies authorized to develop and operate PPTA projects (solicited projects), or by a private entity's submittal of an unsolicited proposal. 581
B. Screening Process. The screening process determines the desirability, suitability, and feasibility of a potential PPTA project. There are two parts to the project screening process. In the first part, the type of
[Page 296]
screening depends on whether a solicited project or an unsolicited proposal is involved. 582 For a solicited project, the initial screening is qualitative and evaluates whether the project meets broader, policy considerations. 583 For an unsolicited proposal, the initial screening is a policy review that evaluates whether the proposal is consistent with the Commonwealth's transportation policy goals. 584 The second part of the process, for both solicited projects and unsolicited proposals, is a quantitative screening...