Press release
Future of Texas Highway P3s Hinges on Next Two Deals
By Mick BowenThe future of P3s to develop highway projects in Texas depends on the shape the next two deals will take, namely the SH 99 Grand Parkway in Houston and IH-35E Managed Lanes project in Denton, market sources told InfraAmericas.
Texas Governor Rick Perry signed Senate Bill 1420 (SB 1420), also known as the Sunset Bill, into law in mid-June and cleared the way for the Texas Department of Transportation (TxDOT) and regional mobility authorities to develop 11 highway projects through P3s. Days before Gov. Perry signed the bill, TxDOT issued request for information (RFI) documents for the Grand Parkway and IH-35E projects. Responses to the Grand Parkway RFI are due Jul. 6 and responses to the IH-35E RFI are due Jul. 20.
Certainty in the Process
“TxDOT needs to focus on getting the first project up and away successfully and demonstrate that it can bring millions of dollars in investments to Texas,” said D.J. Gribbin, a managing director at Macquarie Capital. “The question is not if they can develop all 11 projects, but if they can get the first one going.”
Meanwhile, the US P3 market is seeking clear proof that Texas is now fully engaged in the P3 process after the stops and starts of a few years ago. The market also wants to see a degree of certainty in the process, with projects that make sense commercially and have reasonable procurement timelines, Gribbin added.
“At this point, TxDOT is doing what it can,” he said.
According to José Luis Vittor, a partner at the law firm Hogan Lovells, TxDOT chose to start with the Grand Parkway and IH-35E because they were more likely to be developed, which could trigger a chain reaction for other projects.
“Instead of thinking about how we can get all 11 projects done, let’s think about how we can get these two done. Once the procurement process starts for these two projects, there will probably be others,” Vittor said.
“Showing the market a good track record and proving that Texas is open for business is an important step,” he added.
Transaction Timeline
Once TxDOT gets responses to the RFIs next month, it plans to issue RFQs before the end of August, with responses due before the end of October. The department will then draw up a shortlist of potential bidders and issue RFPs in early December, with responses due in mid-February 2012. TxDOT plans to announce a preferred bidder for the Grand Parkway in June 2012 and a preferred bidder for the IH-35E project in July 2012.
“We think we can get through the process in about 12-14 months and do it in an orderly fashion,” said TxDOT chief financial officer James Bass.
The environmental impact studies for the 11 projects included in the Sunset Bill must be completed by Aug. 1, 2013, and the contracts must be enacted by Aug. 31, 2015. However, the state legislature will review the projects in 2013 and 2015 and could extend the deadlines, Bass said. The Texas state legislature meets for 140 days every other year.
Next up in the RFI queue will be the SH 183 managed lanes project in the Dallas-Fort Worth area, although Bass could not say when the process would start.
No Preferred Solution
During the RFI stage, TxDOT has provided the private sector with some hints about funding, but it has not directly told developers which alternative it would most like to pursue. “We’re open to almost anything. We want to make sure we have robust competition in the final procurement stage. We will decide one-by-one because each project needs to be looked at financially on its own. There is no preferred solution,” Bass said.
To Read The Full Article, click here: http://www.infra-americas.com/analysis/news-analysis/881228/future-of-texas-highway-p3s-hinges-on-next-two-deals.thtml
For more information about InfraAmericas (http://www.infra-americas.com/) and find out if you are eligible for a free trial call Ken McAllister on + 44 (0) 207 786 9282 or e-mail at subscriptions@infraresearch.com. Please remember to quote your reference: IAPR18OPR.
InfraAmericas is the most relevant, timely & accurate provider of news, analysis & research about the latest greenfield & brownfield infrastructure projects & deals across the American continent.
1st Floor
4 City Road
London
EC1Y 2AA
UK
Tel: + 44 (0) 207 786 9282
Fax: +44 (0) 207 256 7926
Email: cbrissay@infraresearch
Contact: Celine Brissay
This release was published on openPR.
Permanent link to this press release:
Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Future of Texas Highway P3s Hinges on Next Two Deals here
News-ID: 182779 • Views: …
More Releases from InfraAmericas
![InfraAmericas Case Study: How Canada’s Jumbo CAD1.37bn CHUM PPP Bond Put Investors to the Test](https://cdn.open-pr.com/6/6/66ac36be56eb10b7f1fa4123d23cc205_g.jpg)
InfraAmericas Case Study: How Canada’s Jumbo CAD1.37bn CHUM PPP Bond Put Inves …
By Vince Calio
In the past 12 months, Canada has once again reaffirmed its status as the market leader in North American PPPs by closing deals including the CAD1bn (USD1.05bn) Ottawa Communications Security Establishment Canada (CSEC) PPP in January this year, the smaller Thunder Bay Consolidated Courthouse at the end of 2010 and, more recently, the St. Joseph’s Healthcare Partnership PPP. But selling a CAD1.37bn (USD1.44bn) credit to investors in June…
![As Interest Grows, Uncertainty Hangs Over Brazil’s Airport Concessions](https://cdn.open-pr.com/a/8/a8241e4bc6767809d702624d32a4fc7b_g.jpg)
As Interest Grows, Uncertainty Hangs Over Brazil’s Airport Concessions
By Mick Bowen
A sense of uncertainty lingers over the coming concessions in Brazil's airport sector as operators, contractors and infrastructure investors attempt to figure out exactly what the Brazilian government plans to do, market sources have told InfraAmericas.
Yet the process is irreversible now that it has begun, ensuring that Brazil's most important airports will come under private control in the next year or so, they said.
"The model still…
![Is Private Investment in US Ports About to Make a Comeback?](https://cdn.open-pr.com/6/b/6be86d128efedd5dc7621ab12e5ecac8_g.jpg)
Is Private Investment in US Ports About to Make a Comeback?
By Michael Dunning
US ports are an attractive asset for infrastructure investors particularly because they are linked to GDP growth. It’s therefore not surprising that during the height of the rush to acquire infrastructure assets in 2006-07, they were at the top of many shopping lists. That led to a number of major US ports changing ownership. But nearly all of those deals ran into difficulties. The reasons why are many…
![US P3 Forum 2011: What Happened in New York? InfraAmericas’ Ten Key Takeouts](https://cdn.open-pr.com/3/5/35a07b03834ced4c1dceb40bbab7cbcd_g.jpg)
US P3 Forum 2011: What Happened in New York? InfraAmericas’ Ten Key Takeouts
By Peter Allison
The overwhelming message from this year’s event – held Jun. 14 & 15 at the Grand Hyatt Hotel in midtown Manhattan – was that P3s breed P3s. In short, more P3 deals will jump-start the market.
It’s not as straightforward as that, however. The US P3 market is almost impossible to define. A P3 in one state may be completely different to a P3 in another. And even…
More Releases for TxDOT
Road Repairs and Maintenance Market Share, Size, Trends, Statistics, Revenue, De …
Road Repairs and Maintenance market 2020 Industry Report offers decisive insights into the overall Road Repairs and Maintenance industry along with the market dimensions and evaluation for the duration 2020 to 2026. The forenamed research study covers extensive analysis of various Road Repairs and Maintenance industry segments based on the type of applications, type of product Components and services, and different geographical regions.
Get Sample Copy at https://www.orianresearch.com/request-sample/1489549
The report additionally…
Road Repairs and Maintenance Market Service, Application and Global Forecast 202 …
“Road Repairs and Maintenance Market” research report provides a competent and systematic approach to explore the force terminal industry. This research report studies the global market status and forecast, market size, type, application and region. Global Road Repairs and Maintenance Market based on geographic classification is studied for industry analysis, size, share, growth, trends, segment, top company analysis, outlook, manufacturing cost structure, capacity, supplier and forecast to 2024. This report…
Global Road Maintenance Market Insight 2019-2024: TxDOT, VDOT, NCDOT, NYSDOT, Pe …
Road Maintenance involves remedying defects such as potholes that occur in the carriageway from time to time (corrective maintenance) and providing treatments such as crack sealing which will slow the rate of deterioration (preventative maintenance). Typical maintenance activities include: Crack filling and sealing.
As one of the longest highway system and largest economies, road maintenance is the necessary and important expenditure in United States; with increased focus on infrastructure expansion,…
Road Maintenance Market Trends 2019 Key Players Like: Caltrans, TxDOT, VDOT, MDO …
Road Maintenance Market 2019-2024:
Road Maintenance involves remedying defects such as potholes that occur in the carriageway from time to time (corrective maintenance) and providing treatments such as crack sealing which will slow the rate of deterioration (preventative maintenance). Typical maintenance activities include: Crack filling and sealing.
Make a Request for Sample Report with 30 mins free consultation @ https://www.reportsmonitor.com/request_sample/405571
As one of the longest highway system and largest economies, road maintenance is…
Road Maintenance Industry Analysis: Market Growth, Emerging Trends and Top Key P …
Road Maintenance Industry involves remedying defects such as potholes that occur in the carriageway from time to time (corrective maintenance) and providing treatments such as crack sealing which will slow the rate of deterioration (preventative maintenance). Typical maintenance activities include: Crack filling and sealing.
As one of the longest highway system and largest economies, road maintenance is the necessary and important expenditure in United States; with increased focus on infrastructure expansion,…
Road Repairs and Maintenance Market 2019 by Leading Players of this Industry Lik …
Orian Research Consultant recently announces a latest research on Global Road Repairs and Maintenance Market 2019 which highlights the Road Repairs and Maintenance market size, share, growth, drivers, comprehensive Road Repairs and Maintenance industry dynamics and high-tech updates of global Road Repairs and Maintenance market with respect to industry opportunities, threats, challenges, constraints, cost structure and current trends in the Road Repairs and Maintenance industry. This report primarily focuses on…