Public-Private Partnerships

Question 1 (10 points total):

In Week 6, you read two readings about the Union Station project in Washington, D.C. The first reading, “Union Station, Washington, D.C. United States,” outlines the success of the Union Station project as a PPP. The second reading (Meyer, 2015), is a NY Times article about a new development project at Union Station. Answer the following questions based on readings from the class and these two readings on Union Station. You should NOT conduct additional research about Union Station beyond these readings. Properly cite your work APA style. Type your response below each question. The best answers will be 2-3 single spaced paragraphs per question in Times New Roman, 12-point font. Please note we are looking for responses in your own words (properly cited) and NOT a collection of direct quotes from the readings.

Question 1, Part A (5 points):

Using the reading “Union Station, Washington, D.C. United States” as your main guide, describe the partners/partnerships, financial agreement, contract provisions, and implementation metrics of the original Union Stations PPP. Using this reading and other readings from the course, explain how this project does or does not include best practices in risk sharing, contracting, and PPP structures as studied in this course. The best answers will be 2-3 single spaced paragraphs per question in Times New Roman, 12-point font.

Question 1, Part B (5 points):

Using the reading Meyer (2015) reading as your main guide, describe the goals, partners/partnerships, financial agreement, contract provisions, and implementation metrics of the proposed Union Station redevelopment PPP. Using this reading and readings from the course, explain how this project does or does not include best practices in risk sharing, contracting, and PPP structures as studied in this course. Outline challenges and discuss any potential pitfalls that may impact the timeliness and cost of this project. Discuss how those risk(s) associated with these pitfalls could be mitigated. The best answers will be 2-3 single spaced paragraphs per question in Times New Roman, 12-point font.

Question 2 (10 points total):

Please click the hyperlinks below and read the following six articles. Note: PDF copies of these articles are also available on BlackBoard under the “Final Exam” tab.

1. “Skanska quits US P3 market, replaces civil division chief”
https://www.constructiondive.com/news/skanska-quits-us-p3-market-replaces-civil-division-chief/540464/

2. “Skanska Books $100M Write-Off On P3s As US Civil Chief Exits That Role”
https://www.enr.com/articles/45637-skanska-books-100m-write-off-on-p3s-as-us-civil-chief-exits-that-role

3. “Moody’s: Florida I-4 P3 filed $100M claim for extra costs, wants 245 extra schedule days”
https://www.constructiondive.com/news/moodys-florida-i-4-p3-filed-100m-claim-for-extra-costs-wants-245-extra/527797/

4. “NY–NJ Port Authority green lights $4B Delta LaGuardia terminal”
https://www.constructiondive.com/news/nynj-port-authority-green-lights-4b-delta-laguardia-terminal/447703/

5. “LaGuardia Airport – Central Terminal B Redevelopment”
https://www.usa.skanska.com/what-we-deliver/projects/169977/LaGuardia-Airport-Central-Terminal-B-Redevelopment

6. “I-4 Ultimate”
https://www.usa.skanska.com/what-we-deliver/projects/113147/I4-Ultimate/sustainability?Query=Ultimate

Question 2, Part A (5 points):

These articles describe Skanska’s decision to withdraw from U.S. mega-projects due to underperformance. As noted in the “I-4 Ultimate” reading (reading #6), Skanska formed a project company named “I-4 Mobility Partners” to support this project. LaGuardia Gateway Partners (LGP), as noted in “LaGuardia Airport-Central Terminal B Redevelopment” (reading #5) is the project company formed for to support the airport project. Define and describe a project company, and outline why a company like Skanska might form one to develop a mega-project. How do project companies support mega-project development (hint: you will need the Esty reading for these two questions)? The best answers will be 2-3 single spaced paragraphs per question in Times New Roman, 12-point font.

Question 2, Part B (5 points):

The two projects noted in this question did not perform well. Based on what you know about project companies from the readings, how did the project company structure impact Skanska when these projects underperformed? What risks did Skanska assume for these projects and were they consistent with best practice? Lastly, do the readings suggest reasons, perhaps ones outlined by Flyvbjerg, Yescombe, or another author, regarding why these projects failed to deliver a profitable return? The best answers will be 2-3 single spaced paragraphs per question in Times New Roman, 12-point font.
Question 3 (10 points total):

This is a hypothetical scenario. The Governor of Ohio recently attended a conference on mass transit. He is convinced that the pathway for future development in Ohio depends on a robust public transit system to connect Ohio’s major cities. The Governor recently announced the C3-P3: Cincinnati-Columbus-Cleveland Public-Private Partnership Train Network. This $1.5 billion train network will operate as a PPP. The Governor was recently quoted, “Engaging the private sector to build and operate a light rail system and bullet trains to connect our cities is the key to long-term growth. The private sector will assume the greatest risk and reap reasonable profits for operating this rail network.”

You work as a legislative aide to a State Senator from Columbus. She is skeptical about this proposed project and private sector involvement. She has a lot of questions: “How well do mega-projects perform generally? Rail? Are they developed on time? On budget? And used by riders? How should the state make determinations on development costs, timelines, and usage? Why do these projects often fail?” She has asked you to prepare a two-page memo to her outlining the keys to successful mega-projects, especially rail projects.

Starting on the next page, prepare a two-page, single spaced memo in Times New Roman, 12-point font. In this memo, address the assumptions raised by the Governor and questions raised by the State Senator. Conclude with your policy and management recommendations for the State Senator.

Memo to State Senator

First sentence here…

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