Dimensions - Fall 2012 - 7
Q&A: Insight on Funding Options
Dimensions® recently spoke with Dan Elias of Elias Group LLP. Elias specializes in project finance, mergers, and acquisitions of regulated and non-regulated entities, strategic alliances, and public-private partnerships. He is a director of the National Council on Public-Private Partnership and a member of the New York State Bar Association and the Design-Build Institute of America.
What’s driving organizations to seek funding alternatives?
It’s obviously a need to economize. The public and private sectors are looking for ways to fund critical infrastructure improvements more efficiently. The public sector is faced with dwindling tax revenues, rising costs, and aging infrastructure. Thus, they have to be more creative about supporting community needs and maintaining essential services.
make this approach more complicated and difficult to manage. A third approach is outsourcing services. This is possible at any level—from utility monitoring to design to community engagement. Potential benefits include reduction in costs and the ability to shift risk and accountability by drawing on expertise that may not be available in-house.
What do you recommend?
In our industry, there is by now enough proof to support cost and schedule savings by using alternative funding and delivery methods, such as P3s. Alternatives should be considered where they are available and make sense. Because of the potential risks involved, these delivery and funding mechanisms require strong management, communication, and contract administration skills—from developing a well-balanced contract to delivering services in a measurable way that builds trust among all parties.
What options are available?
We’re seeing some public-sector entities take the approach of a concession agreement, which is generally used to monetize expected savings through an upfront concession payment which, in turn, can be used by the public-sector to meet current budgetary shortfalls. Another approach, and I don’t see this a lot, are public entities selling an infrastructure asset, such as a sewer system, to raise funds. There are regulatory and, potentially, public perception issues, which
“The Richmond Airport Connector Road is a showcase of how the Commonwealth can use public-private partnerships to create jobs, improve our transportation network, and strengthen our economy, says Virginia ” Secretary of Transportation Sean T. Connaughton.
Fall 2012
7
Dimensions - Fall 2012
Table of Contents for the Digital Edition of Dimensions - Fall 2012
Dimensions - Fall 2012
Spotlight on the Staff: Glenn Pearson
Contents
Lerner Enterprises Transforms a Landmark
Committing to the Gulf: Q&A with Bryon Griffith
Team Effort: Agencies Turn to Alternative Delivery
Intelligent Modeling
Performance Briefs
2200 Pennsylvania Avenue Opens in D.C.
Dimensions - Fall 2012 - Dimensions - Fall 2012
Dimensions - Fall 2012 - Cover2
Dimensions - Fall 2012 - Contents
Dimensions - Fall 2012 - Lerner Enterprises Transforms a Landmark
Dimensions - Fall 2012 - Committing to the Gulf: Q&A with Bryon Griffith
Dimensions - Fall 2012 - Team Effort: Agencies Turn to Alternative Delivery
Dimensions - Fall 2012 - 5
Dimensions - Fall 2012 - 6
Dimensions - Fall 2012 - 7
Dimensions - Fall 2012 - Intelligent Modeling
Dimensions - Fall 2012 - Performance Briefs
Dimensions - Fall 2012 - 2200 Pennsylvania Avenue Opens in D.C.
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2019winter
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2018fall
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2018summer
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_annualreview2017
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2018winter
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2017fall
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2017summer
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_annualreview2016
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2017winter
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2016fall
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2016summer
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_annualreview2015
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2016winter
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2015fall
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2015summer
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_annualreview2014
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2015winter
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2014fall
https://www.nxtbook.com/nxtbooks/dewberry/Dewberry/dimensions_2014fall
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2014summer
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2014spring
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2014winter
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2013fall
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2013summer
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2012annualreview
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2013winter
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2012fall
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2012summer
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2011annualreview
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2012winter
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2011fall
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2011springsummer
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2011winter
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2010fall
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2010summer
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_20100102
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_20091112
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_20090910
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2009summer
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_20090304
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_20090102
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_20081112
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_20080910
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_2008summer
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_20080304
https://www.nxtbook.com/nxtbooks/Dewberry/dimensions_20080102
https://www.nxtbookmedia.com