|
| April 1, 2011
|
|
New Ohio Law Allows Public/Private Partnerships |
|
Ohio can use private dollars to help pay for public road and other infrastructure projects under a $6.8 billion transportation bill that Gov. John Kasich signed into law Wednesday.
House Bill 114, which cleared the Senate unanimously and passed along party lines in the GOP-controlled House last week, allows for a private entity to partially or fully fund construction costs for a public infrastructure project, The Columbus Dispatch reported. In turn, private groups that partner with the Ohio Department of Transportation on projects can reap profits through interest payments from the state, toll collections, or other user fees. Kasich's overall agenda for the state includes privatizing economic development, including possibly leasing the Ohio Turnpike. "The provision on the public/private partnerships, combined with some of the other privatization efforts that we've made, can really get Ohio into a much more strengthened position," Kasich said. ODOT Director Jerry Wray said the use of private dollars would not add to the overall cost of projects and would enable the state to divert some of the risk on construction to the private sector. Wray cited the project to replace the Brent Spence Bridge in Cincinnati, which carries Interstates 71 and 75 across the Ohio River into Kentucky, as a project that could be completed at lower cost if the state partners with the private sector. Under the new law, the state can solicit partnerships for projects, or private groups can propose partnerships unsolicited. ODOT spokesman David Rose said the state soon will study which projects would benefit by seeking private-sector participation. The law also allows engineers and contractors to collaborate on the design and bids for projects, a step the Kasich administration said will expedite the process. Questions regarding this article may be directed to editor@aashtojournal.org. |