Privatization cp ddi 2012 1 Privatization + Coercion 1
P3s empirically successful – long-term, constant source of economic (and infrastructural) growth
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- P3s would minimize government infrastructural expenditures
P3s empirically successful – long-term, constant source of economic (and infrastructural) growthMineta, 06 [Norman Y. Mineta, 14th U.S. Secretary of Transportation, 33rd U.S. Secretary of Commerce, Chairman of the House Committee on Transportation and Infrastructure, 4th Quarter 2006, Journal of Transportation Law, Logistics, and Policy 73.4 Partnerships have long been successfully used in such nations as Australia, New Zealand, Ireland, France, Spain, Chile, Norway and the Netherlands. The evidence is compelling: Partnerships provide capital that is needed for highway construction, maintenance and operations - while well-structured public-private lease agreements keep accountability and oversight in the hands of elected officials and public highway authorities. American policymakers have recently begun to pursue public-private partnerships, and have saved substantial amounts of money for the taxpayers.¶ Two recent U.S. partnerships illustrate how public-private partnerships can benefit America's taxpayers while ensuring safe, modernized road for our drivers.¶ LEASING FOR DOLLARS¶ First, consider the example of the Chicago Skyway. In October 2004, the City of Chicago leased out the operation of an eight-mile, 48-year-old toll road that carries traffic over the Calumet River. In exchange for a 99-year lease, which allows the leaseholder to keep the Skyway's toll revenue, Chicago gained $1.82 billion. The money was paid by a consortium formed by two private companies - Macquarie Bank of Australia and Cintra of Spain - which are obligated to safely maintain and operate the roadway.¶ The flow of traffic is smoother than ever along the Skyway now. Within months, the facility was converted to electronic tolling, created extra peak-period capacity using reversible lanes, and began employing more workers during these peak periods. Private operators have a powerful incentive to improve throughput-more throughput, more revenue, and happier customers. And thanks to the partnership, the City of Chicago became $1.82 billion richer.¶ Second, consider the example of the Indiana Toll Road. In the spring of 2006, the State of Indiana leased out the operation of the 157-mile, 50-year-old toll road that runs across the northern part of the state from the Ohio border to the Illinois border - where the road adjoins the Chicago Skyway.¶ In exchange for a 75-year-lease, the State of Indiana gained $3.85 billion. The firm that won the bidding is the same consortium that won the Chicago Skyway lease: the venture formed by Macquarie Bank and Cintra, which will keep the highway's toll revenue.¶ As part of the agreement, Macquarie and Cintra pledged more than $770 million for upgrades to the roadway, including added lanes, the reconstruction of the road's pavement and bridges, and the installation of an electronic toll collection system (which allows traffic to keep flowing, without having to stop to pay a toll). Indiana's taxpayers now have an extra $3.85 billion to funnel into other state priorities; they save money on the highway maintenance that will now be overseen by Macquarie and Cintra; and they look forward to the planned infrastructure improvements, which might have otherwise overwhelmed the state's highway budget.¶ Other states and regions have been exploring or enacting such partnerships, including Texas, Florida and California. The example of the Chicago Skyway and the Indiana Toll Road have fascinated lawmakers who are eager to ease the tax burden on their states, while catching the attention of American road-construction and toll-road-operating firms. Private investors seem to be thinking: What economic value have Australian-based Macquarie and Spanish-based Cintra identified in these toll-road lease agreements - and what kind of profits can other investors gain?¶ WHAT'S IN IT FOR INVESTORS, TAXPAYERS?¶ As always, private interests will shrewdly calculate, "What's in it for me?" while defenders of the public interest must examine, "What's in it for the strength of our nation's transportation system?"¶ Well-designed public-private partnerships can satisfy both the profit-and-loss imperative of private investors and the public-interest priority of America's citizens.¶ Financiers know a good deal when they see one, and evidently they recognize the wisdom of investing private capital in American infrastructure projects - fixed, bricks-and-mortar assets that will provide a predictable stream of toll-based revenue, year-in and year-out. At the moment, overseas-based companies like Macquarie and Cintra have paved the way in creating public-private partnerships - but as American firms amass capital, study potential deals, and seek leases of their own, the international firms' head start probably won't last very long. 2NC A2 - Spending Links P3s would minimize government infrastructural expendituresGaffey, ‘10 [David W. Gaffey, Law Clerk to Bankruptcy Court for Eastern District of Virginia, Juris Doctor with Honors from George Washington Unviersity, Winter 2010 Public Contract Law Journal 39.2 As our nation's roads, bridges, railway systems, and other critical transportation networks continue to age, the rapidly increasing costs of maintaining and replacing such essential infrastructure will place an immense burden on governments at the federal, state, and local levels over the next ten to fifteen years. In light of Government Accountability Office (GAO) forecasts that highway vehicle miles of travel will increase from three to seven trillion miles over the next fifty years,1 the Federal Highway Administration (FHWA) predicts that the average total annual investment required merely to maintain the nation's existing local and interstate highway infrastructure between 2002 and 2022 is projected to exceed 2002 highway spending levels by 8.3%, and is projected to exceed 2002 spending levels by 74.3% if capital improvements are considered.2 Compounding the impact of this cost increase, the FHWA further forecasts that this annual investment necessary to maintain current highway conditions on federal, state, and local roads will be forty percent greater than the projected revenues derived from these roads between 2002 and 2014.3¶ Given this significant gap between available funding and required expenditures in an era of rising national debt and budget deficits, state and local governments are seeking alternatives to funding transportation infrastructure through traditional means.4 Expanding the use of public-private partnerships ("PPPs"), which use private firms to provide traditionally governmentsupplied services, is therefore invaluable, as the increased use of PPPs would enable the Government to provide needed public infrastructure while minimizing both short- and long-term expenditures. However, in order to effectively utilize PPPs, the United States must develop a national system for the implementation and regulation of their widespread use, a system that reflects the division of power between the local, state, and federal governments. Directory: files files -> Answer True False 2 points Question 2 files -> Integer programming and game theory files -> 4 Integer Programming files -> Bpa vehicle Window Repair Scenario #1 task: Procure vehicle window relacement. Objective files -> Pop Warner History files -> North Carolina Inclusion Initiative Mapping Where Children with ieps are Being Served Purpose files -> Fall 2013 Spring 2014 Program Data: Standard 1 Exhibit 4d files -> Hanban – asia society confucius classrooms network 2010 request for proposal files -> Northern England’s set-jetting locations Download 1.35 Mb. Share with your friends:
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