P3’s Gaining Popularity: PennDOT wants partner in building natural gas fueling stations

The state’s Public-Private Partnership Board approved a project seeking a private partner to develop clean-burning compressed natural gas fueling stations at public transit agencies around the state that would also provide public access to the facilities.

Through the project, the private partner will design, build, finance, operate and maintain these filling stations at up to 37 transit facilities, according to Rich Kirkpatrick, spokesman for the Pennsylvania Department of Transportation.

The agency will enter into a compressed natural gas supply contract with the selected partner as well as purchase agreements with each of the transit agencies. PennDOT would receive a portion of the fuel sales revenue, with the money being returned to transit agencies to help with future capital projects.

“Pennsylvania is now a very significant natural gas producer,” Kirkpatrick told Lehigh Valley Business. “The idea is to engage the private sector to help Pennsylvanians get the natural gas they demand.”

In late October, PennDOT plans to host a forum in which potential partners can ask questions and hear presentations about the project for the business community, Kirkpatrick said.

PennDOT will disclose more detailed information in November and ask for proposals early next year.

The agency then would issue a short list of finalists and, by spring, issue the formal request for proposals, Kirkpatrick said. A project team could be selected next summer.

In 2012, Gov. Tom Corbett signed into law the Public and Private Partnerships for Transportation Act, which authorized P3 projects in Pennsylvania. This law allows PennDOT and other transportation authorities and commissions to partner with private companies to participate in delivering, maintaining and financing transportation-related projects.

The agency has not determined where the facilities would be built, but the project could benefit the business community in the Greater Lehigh Valley.

“The Greater Lehigh Valley Chamber of Commerce fully supports public-private partnerships, and the chamber is 100 percent supportive of business and believes in the spirit of enterprise,” said Michelle Griffin Young, executive vice president of government and external affairs for the Greater Lehigh Valley Chamber.

The chamber believes that government can save money by working with businesses, and P3’s are a good cost-saving tool, Griffin Young said this morning.

“Whenever you can utilize business, it makes perfect sense for the economy,” she said.

Source: LVB.com