Pennsylvania eyes public-private partnership for managed lanes
3 min read
Pennsylvania DOT
Pennsylvania is considering a range of public-private partnerships, including a $5 billion interstate managed lane project, replacing Pittsburgh-owned bridges, a pair of Pittsburgh International Airport upgrades and modernizing interstate carpool lanes.
The projects include both solicited and unsolicited proposals in the commonwealth’s public-private partnership office, which oversees one of the country’s most ambitious P3 programs. It’s housed in the Pennsylvania Department of Transportation.
The P3 office accepts unsolicited proposals twice a year and in October, its most recent window, it received four, P3 office director Mike Bonini said Thursday during the agency’s twice-annual meeting. The ideas range from new managed lanes to a tolled interchange near Philadelphia and replacing Pittsburgh-owned bridges. The board did not take any action on the proposals.
“They are all certainty worthy of examination,” said Pennsylvania transportation secretary Michael Carroll, who is chair of the P3 transportation board. “Each has unique details and qualifications, but they are sincerely trying to deal with a transportation challenge. I for one welcome the unsolicited proposals and look forward to next steps.”
Industry heavyweight Cintra submitted a project that calls for four new tolled managed lanes, two in each direction, along a 17-mile section of I-76. The firm first proposed the project in 2021 but since revised the submission, Bonini said.
The design-build-finance-operate-maintain P3 carries an estimated $5 billion price tag that would include a $200 million payment to PennDOT, according to board materials. It would include a 50-year maintenance period. PennDOT has met with Cintra and is analyzing the project’s feasibility as a P3.
“We received the updated proposal from the team and now the department will perform a ‘high level screen report’ based on the proposal,” Bonini said, saying the office would consult with various experts and “prepare a little report for department staff to consider how to move forward with this.” The next step could be crafting a “detailed level screen,” asking additional questions of Cintra, or dismissing the proposal.
S&B USA Construction submitted an unsolicited proposal to replace a bundle of Pittsburgh’s bridges over a three-year period with costs between $150 million to $400 million. The program calls for an accelerated progressive delivery of city-owned bridges based on a design-build-finance model. The P3 office has sent the proposal to the city of Pittsburgh and will review it in conjunction with city staff, Bonini said. The review will be delayed until the city’s new mayor, Democrat Corey O’Connor, takes office in January.
“There’s a transition in City Hall and we’ll be very sensitive with the timing of new mayor,” said Carroll.
A third unsolicited proposal calls for a new tolled interchange off I-95 in South Philadelphia that would cost between $500 million to $600 million. “This little corner of the state has a lot going on,” said Carroll, noting nearby entities include the Philadelphia airport, port and sports stadiums. “Access to I-95 is the holy grail, so a project like this is certainly worthy of consideration.”
The board is also considered a trio of solicited proposals. Two are for the Pittsburgh International Airport, which
A third proposal would modernize existing carpool lanes along I-279 and I-579 to improve traffic flow into downtown and suburban Pittsburgh. The office is advancing that idea to the “detailed level” study phase, Bonini said.
The P3 office has rejected four previously submitted unsolicited proposals that included one from Cintra for a statewide connected vehicle road user charge pilot.
The commonwealth’s current high-profile P3s include the Major Bridge Program, a design-build-finance-operate-maintain P3 led by Macquarie Capital and Shikun & Binui that replaces and rehabs six major interstate bridges by 2028, and the $1.12 billion Rapid Bridge Replacement program with Plenary that covers 558 spans across the state.
