As it appears increasingly likely that Congress will throttle the flow of federal transportation dollars to the states, state officials are looking at alternative financing mechanisms such as Public Private Partnerships (P3s). As it happens, Virginia is one of only four states with extensive experience with P3s — the others are California, Texas and Florida — so it’s no surprise that Governing magazine touched base with Doug Koelemay, the McAuliffe administration’s P3 chief, for comments in a recent article.

Koelemay, who heads the state’s Office of Transportation Public-Private Partnerships, … stresses the need for an open process in developing the agreements. Public notice and comment periods are often “sterile” and yield little useful information. But more public involvement can help planners develop better projects, Koelemay says, because they can understand the public’s concerns as consumers of transportation services.

P3s are an invaluable tool for building transportation mega-projects. But as experience in Virginia has shown, there is a built-in tension between protecting the confidentiality of P3 contract negotiations and maintaining openness and transparency. The public is not well-served by a process in which a negotiated contract is presented with a take-it-or-leave-it option. Of course, the public is not well served either by an open-ended process that allows for continual modifications and revisions leading to mission creep and cost overrruns.

I’m not sure how to balance the conflicting considerations. There are no easy answers. Koelemay is clearly signaling that the McAuliffe administration is leaning toward greater openness and transparency.

— JAB

(Cross posted from Bacon’s Rebellion)