This paper demonstrates a screening analysis to assess the financial and economic viability of public–private partnership (P3) projects involving priced managed lanes in metro areas. The methodology uses the P3-VALUE 2.3 analytical tool, which is capable of performing financial and benefit–cost analyses to evaluate the viability of highway projects delivered through P3s. The methodology is demonstrated using alternatives for a hypothetical existing six-lane freeway segment (three lanes per direction inclusive of one high-occupancy vehicle [HOV] lane per direction). Alternatives evaluated included (1) adding a single new high-occupancy toll (HOT) lane per direction with free service for HOVs with three persons or more (HOV3+) as a replacement for the existing HOV2+ lane, which would become a general-purpose lane; (2) converting the existing HOV lane to a HOT lane and simultaneously converting the right shoulder to a part-time shoulder travel lane, with surplus revenue dedicated to support multimodal improvements and cash rewards for transit riders and carpoolers; and (3) adding a new HOT lane and converting the adjacent HOV lane to a HOT lane, while converting the right shoulder to a part-time shoulder travel lane. The evaluation suggests that, for the hypothetical freeway, P3 delivery of Alternative 2 would be financially viable with a small government contribution, would affect the sponsoring agency’s budget positively over the proposed 50-year P3 concession, and would generate significant net social welfare benefits. Where right-of-way is limited, the other two alternatives would require significant government contributions while generating smaller net social welfare benefits.
Methodology to Screen Candidate Public–Private Partnership Projects for Financial and Economic Viability
Transportation Research Record: Journal of the Transportation Research Board
2025-06-06
Article (Journal)
Electronic Resource
English
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