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DOT announces experimental initiatives on public transit financing
Kirill Abbakumov   on Wednesday, September 13, 2017 at 12:00:00 am

On August 31, 2017, the Department of Transportation’s (DOT) Federal Transit Administration (FTA) announced its proposal of new, experimental procedures to encourage more innovation in project funding, improved efficiency, and new project revenue streams in infrastructure and transportation projects. The primary goal is to address impediments to the greater use of public-private partnerships (P3s) and private investment in public transportation capital projects (Private Investment Project Procedures or PIPP).

Over the past decade, federal legislation has evolved to encourage increased use of public-private partnerships and private investment in public transportation capital projects. FTA has been active in providing limited technical assistance to transit agencies, local officials, and consultants on legal and regulatory issues, financing, and contract matters related to P3s in order to facilitate increased private sector participation in project development and operation of transit projects.

Upon ratification of the Moving Ahead for Progress in the 21st Century Act (MAP-21), FTA was able to identify impediments to the use of public-private partnerships and private investment in public transportation capital projects, and to develop and implement procedures that authorize an expedited project delivery program for capital investment projects that requires projects be supported, at least in part, by public-private partnerships.

FTA anticipates using the lessons learned from experimental PIPP procedures to develop more effective approaches to including private participation and investment in project planning, project development, finance, design, construction, maintenance, and operations.

FTA is soliciting public comments on the announced proposal until September 29, 2017. Any comments filed after this deadline will be considered to the extent practicable. Comments can be submitted through the Federal Register.