The chart below outlines the process for evaluating and considering a project for Public-Private Partnership. Click on image to view information in Acrobat format (87KB, PDF).
Analysis of Initial Projects
Metro staff and our consultants, HDR/InfraConsult LLC and their team, have completed strategic assessments of six initial PPP candidate projects (Crenshaw/LAX Transit Corridor, Purple Line Extension, Regional Connector Transit Corridor, SR-710 North Gap Closure, High Desert Corridor and I‑710 Corridor), and business plans for the three highway projects, outlining potential PPP options for each of the three projects. The projects as defined in our PPP analysis are currently being analyzed as alternatives in our on-going environmental clearance work, and would only be considered for implementation if ultimately selected by Metro’s Board as the locally preferred alternatives.
Utilizing definitive value for money analyses, cost analyses, evaluation of risk assessment, and other project evaluation exercises, the mission of the PPP Program is to determine ultimately which project delivery method, design/build or PPP, provides the best value for Metro and the citizens of Los Angeles County.
Through the strategic assessments, we’ve determined that a full design, build, finance, operate and maintain delivery of the three transit projects would not be an optimum approach, as these are extensions of existing systems, presenting long-term operations and maintenance issues. However, we are proceeding with these as design/build delivery projects.
Evaluation of Highway Projects
The three highway projects would provide financial and project delivery benefits when undertaken as PPPs, particularly when evaluated on a whole-life costing basis, which considers the cost of designing, building, and maintaining a project over a 35-50 year contract period. Each project offers a unique set of opportunities for potential acceleration and/or cost savings, although the benefits differ substantially among the projects. All of the projects have aspects that could interest major contractors and equity and debt sponsors. At this time, we don’t anticipate a procurement solicitation commencing until the environmental work is completed.
More information about the SR-710 North Gap Closure, the I-710 Corridor and the High Desert Corridor can be found on Current Projects tab.
ARTI & Sepulveda Transit Corridor
We are actively considering two other potential PPP projects and progressing toward procurement of both. One is a package of six relatively small projects labeled the Accelerated Regional Transportation Improvements (ARTI) project and the second is the Sepulveda Transit Corridor project .