Public-Private Partnerships (PPPs)
What are PPPs?
Public-private partnerships (PPPs), the construction and upgrading of public-sector infrastructure facilities on the basis of private-enterprise financing, has developed in the past few years into a genuine procurement alternative for public authorities in North America. It is a fact that, without the PPP model, many projects would not put out to tender because they could not be financed with public funds. PPP makes it possible to tackle such projects with the help of private capital. Public-private partnerships thus represent a way of overcoming the investment backlog in the public sector. They offer the opportunity of initiating a process of consolidation and modernization in the field of public administration which in the long run eases the strain on public sector budgets.
Flatiron's PPP Experience
Flatiron is one of a handful of U.S.-based companies uniquely positioned to offer substantial expertise leading the design-build portion of a PPP team, both during procurement as well as during the design-build phase.
One of Flatiron's PPP projects is located on the border between British Columbia and Alberta on a section of the formerly narrow Trans-Canada Highway. The highway, with sheer rock faces on one side and a steep drop-off to a rail line and Kicking Horse River on the other, winds through Kicking Horse Canyon. Flatiron constructed approximately three miles of new four-lane highway and constructed a new 1,328-foot-long bridge. It was the first curved incrementally launched steel bridge in North America, with five piers standing nearly 300 feet tall. The new alignment, which was completed eight months ahead of schedule in August 2007, eliminates steep grades and sharp curves that posed a danger to the two million vehicles that travel this stretch of highway each year, as well replacing a 2-lane highway with a 4-lane highway.
A few hundred miles away in Calgary is the 21-kilometer (13-mile) North East Stoney Trail Ring Road, a C$408 million highway project to construct the new northeast portion of a ring road, ranging from four to six lanes, around the city. Flatiron is managing the design-build team as part of the Stoney Trail Group that is designing, building, operating-maintaining, and partially financing this project, in partnership with the Alberta government, over a 30 year period.
This same team secured the contract to design and build the North Edmonton Ring Road, a C$995 million project to construct 13 miles of new roadway around Alberta's capital city.
HOCHTIEF's PPP Experience
Flatiron's parent company, HOCHTIEF, is also active in the PPP market. In recent years, HOCHTIEF has systematically evolved into an international provider of construction and construction-related services. Geared as it is to a strategy of profitable growth, HOCHTIEF is steadily extending its involvement in concessions business. This primarily includes the business fields of airports and public-private partnerships (PPP). In doing so, HOCHTIEF uses competitive advantages resulting from its international experience and great competence, and has thus given itself an excellent starting position in this growth segment. Today, HOCHTIEF is the No. 1 in this field among German construction companies.
HOCHTIEF PPP Solutions today is involved worldwide in a total of 34 PPP projects (19 projects in the field of public buildings and 15 toll roads), with an investment volume of almost EUR 15 billion. HOCHTIEF is involved in PPP projects in the fields of toll roads/transport infrastructure and public-sector building construction/social infrastructure.
With Flatiron as the design-builder and HOCHTIEF as the concessionaire, our team is uniquely positioned to offer turn-key PPP solutions for roads and other PPP transportation projects throughout North America.