For Immediate Release
6/10/08

Senate Panel Approves Madigan Bill to Authorize Public-Private Partnerships for Transportation Projects

The Senate Transportation Committee today approved legislation sponsored by Committee Chairman Senate Roger Madigan (R-Bradford) that would enable the Commonwealth to use alternative funding mechanisms to fund transportation projects. 

Senate Bill 1158 would allow the Commonwealth and regional transportation authorities to enter into agreements with the private sector to design, construct, manage or maintain new or expanded transportation options through Public Private Partnerships (P3s).  

"At a time when we are looking closely at options to provide funding for crucial transportation project, this concept can be applied across a wide variety of modes, including highway capacity increases, transit improvements and operations, and rail facilities," Madigan said. "Even the sky may not be the limit as private partners can be facilitators for airport facilities as well."   

The proposal is focused on creating new capacity and specifically restricts the leasing of the Pennsylvania Turnpike from consideration.  

"The Turnpike lease is an issue for a separate piece of legislation," said Madigan, noting that Governor Rendell recently proposed a 75-year lease of the Pennsylvania Turnpike to the Spanish firm Abertis and US-based Citi Infrastructure Investors.  "The Governor's Turnpike proposal will be deliberated during the coming months and should legislation surface will be considered separately."   

Madigan noted that states are facing mounting pressures to simply maintain the transportation infrastructure they have in place, and many – including Pennsylvania – are looking for new ways to operate transportation networks more affordably and efficiently.    

"We have worked to provide the platform for launching Pennsylvania into the partnership area," he said. "Now we are looking to industry leaders and other transportation experts to develop good projects that draw private capital to Pennsylvania." 

If the legislation is approved by the General Assembly, Pennsylvania would join 22 other states that have already authorized the use of P3s. The partnerships authorize the use of private capital or private management expertise on transportation projects. 
 

Contact:

Craig Shuey
717-787-3280

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