FAQ

In 2003, the Georgia legislature passed a law that allowed for unsolicited proposals to be submitted under what was then known as the Public Private Initiative, or PPI, program. Several unsolicited proposals were subsequently submitted, including proposals for GA-316, GA-400, I-285W/I-20W and I-75/I-575. Ultimately, only the I-75/I-575, or Northwest Corridor project was advanced. That agreement with that project team has since been terminated, although significant work has been conducted that can be used to advance a project along that corridor through a new approach.

In 2009, the legislature put in place a new framework empowering the Georgia DOT to identify projects and solicit proposals under what is now known as the Public Private Partnership, or P3, program. This solicited approach allows the Department to maintain complete control of project identification, selection, procurement and construction. The result is a program that will effectively deliver projects that increase mobility and provide greater options for the traveling public.

Why should we pursue Public Private Partnerships?

There’s no question that Georgia’s transportation infrastructure must continually improve to meet the mobility needs of today and the economic development needs of tomorrow. There simply aren’t enough resources to meet all of our state's transportation needs with the current funding and delivery methods. P3 gives us a faster and more efficient way to solve our transportation problems without compromising quality. Private partners bring innovation, new technologies and private resources and capital to a project, which can free up state resources for other transportation needs. Georgia could not deliver projects of the size and scope possible through P3 by relying on traditional processes and existing funding.

How does P3 speed delivery of projects?

Traditional projects are fully designed, and then go to bid for construction once funds become available. P3 allows us to access private sector capital as a new funding source, or use it to bridge to a future income stream. These new sources of capital allow for projects to be initiated years in advance than they could through traditional means.

How are P3 projects funded?

With Georgia’s P3 program focused solely on solicited proposals, we hope to encourage competition between competing teams of private partners. This competition drives innovative approaches, including methods of project funding. Thus, there is no single formula for funding a P3 project. Projects may be funded through a combination of public and private sources, which may include but are not limited to:

Equity
Grant anticipation bonds
General obligation bonds
Private activity bonds
Flexible matching
Bank loans
Section 129 Loans
Transportation Infrastructure Finance and Innovation Act Credit

Will P3 projects bring jobs to Georgia?

The Department anticipates P3 projects will trigger strong competition for local resources. Further, these are projects that we would typically not be able to construct without private partners, so there would be no jobs created at all without P3. Most of the companies participating in the growing P3 industry are either national or international organizations, and it is the strength of those partners that Georgia is seeking to gain. While those partners may be based across the country or across the world, they will still bring jobs to Georgia because it is cost efficient and makes good business sense to team with local companies to do the work here in Georgia.

Will roads built by private partners be different than the other systems around the state?

No, roads constructed under P3 contracts will be designed and built to Georgia DOT-approved design standards and specifications, over which we will maintain complete oversight. The differences will likely be in the form of new transportation choices for drivers such as managed lanes, or new transit systems.

How will GDOT ensure that environmental regulations are followed and enforced by private partners?

All P3 projects will be subject to the same environmental process and oversight as any other project. Federal and state agencies, through continuous project guidance and oversight, will ensure project decisions are compliant with regulations including appropriate public input and stakeholder reviews.

Is the state giving up control over decisions related to design, engineering or construction?

No, the P3 program is truly designed to be a partnership. The Georgia DOT ultimately sets the ground rules by which a project is procured, designed and constructed, and will maintain oversight to ensure that these rules are followed.

Will all P3 projects rely on tolls?

Tolling will likely be a part of many P3 projects. Current transportation funds are simply insufficient to continue maintaining Georgia’s existing infrastructure and construct new projects to meet the state’s growing mobility and economic development needs. Tolling options provide a viable means of helping pay for projects that the state would otherwise be unable to afford to construct.

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