The Virginian-Pilot »
This editorial tells the story about the high cost of public-private partnerships (P3s) in Virginia. Taxpayers paid $200 million for the U.S. 460 project, which never panned out. The state has already paid $580 million for the $2.1 billion Midtown Tunnel project. Drivers are currently paying higher tolls while construction is still in progress.
Associated Press/ABC13NewsNow.com »
The Virginia Department of Transportation (VDOT) has issued a letter to US 460 Mobility Partners terminating the $1.4 billion design-build (D/B) contract for a 55-mile stretch of highway. The state has spent nearly $300 million on the project and is seeking reimbursement in an unspecified amount from the contractor.
The Virginia Department of Transportation (VDOT) terminated the $300 million public-private partnership (P3) contract with US 460 Mobility Partners. The P3 project to build a new 55 mile stretch of highway never broke ground, but the state has already paid $252 million to the consortium. Negotiations are underway to determine how much of the taxpayer money will be returned to the state.
While the internal review of the $1.4 billion US 460 Project found no breaches in the law and process, it did raise some serious concerns about the way the proposed public-private partnership was progressing. Overall it found a lack of transparency keeping key stakeholders like the public and the Commonwealth Transportation Board in the dark. The deal was also found susceptible to the contractor overestimating the value of its work and services.
It is important to note that this report was also hampered by the previous Governor Bob McDonnell and his Chief of Staff as well as then Transportation Secretary Sean Connaughton, as they have held onto to some documents per the state code. They have been designated as the Governor’s working papers. Thus even more details are being withheld from the public which indicates there may be more they are trying to hide. The review made several recommendations for future P3 deals, including a 30 day period for state legislators to review the contract before it is finalized.
PilotOnline.com »
The US 460 Public-Private Partnership (P3) would have built a new tolled freeway along an existing one in Virginia. the project was never publicly supported as the current route is already lightly traveled but it did have the political support of then state Governor Bob McDonnell. The project failed to secure the necessary permits from the Army Corps of Engineers but officials in charge of the project continued to push it forward regardless. The result was a waste of $300 million of taxpayer money. This article provides details on the political figures in question and how the usual permit approval process was side-tracked for this project. Overall this proposed P3 was such a fiasco that the state of Virginia’s Inspector General’s Office would be investigating the project along with the internal review being done by the state’s Department of Transportation.
Pilot Online »
This piece covers the decision by a Portsmouth Circuit Court which declared Virginia’s $2.1 billion public-private partnership Midtown Tunnel deal and its tolls unconstitutional. The decision from Judge James A Cales Jr. came as a great relief to the residents who had been working against the project which they feel is unfair and punitive for commuters and businesses. Cales held that the General Assembly exceeded its authority in giving Virginia Department of Transportation authority to set toll rates under the 1995 Public-Private Partnership Transportation Act. Virginia’s Governor, Bob McDonnell and Attorney General have vowed to appeal the decision as they feel the tolling plan is legal, and the consequences are very grave for the future of the project and others should the ruling stand. Article provides detail on the court proceedings, the plaintiffs and defendants, and expands upon the Judge’s ruling.