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California's PPP growing pains
24 September 2010
It pioneered US infrastructure PPPs 15 years ago, but California is still working out how to get private bidders comfortable. But looming over a new push into availability deals is a drawn-out fiscal crisis. By Edward Russell.
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[california]
[long beach]
[courthouse]
[presidio parkway]
[south bay]
[high-speed]
For all its promise, California’s public-private partnership (PPP) pipeline is as dry as Death Valley. So far this year, only the Long Beach courthouse replacement has been awarded while the Presidio Parkway project, already behind schedule, continues its long and arduous journey through the state’s lengthy procurement process. However you cut it, the outlook for California PPPs does not look sunny.
“The PPPs that are going to get closed, the ones that are going to work are going to be few and far between in California,” said one infrastructure adviser.
Legislators and bureaucrats in Sacramento are sending three distinct messages. Leading the charge are governor Arnold Schwarzenegger and Dale Bonner, secretary of the state’s business, transportation and housing agency. As recently as this August, Schwarzenegger spoke on the importance of infrastructure to the country’s – and state’s – economic recovery and cited partnerships as...
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