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Volume 4, Issue 10June 13, 2012
Wastewater needs ripe for private sector solutions

Mary Scott NabersIn the world of government where budget constraints are becoming more difficult each week, one service area is particularly ripe for private sector solutions. Wastewater plants that are in dire need of upgrades are definite targets for public-private partnerships (P3s).

 

Most plants have maxed out rate increases and lack the funding resources to implement much-needed upgrades. Throughout the country, the trend for these types of partnership engagements is getting stronger each month. For example: 

  • Falmouth, Massachusetts, hosted The SmarterCape Summit that focused on regional issues including wastewater. Throughout the event, discussions on the benefits and feasibility of public-private partnerships were discussed, emphasizing that with adequate research done by each party, the partnerships could ultimately increase efficiency and effectiveness for all.

 

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IN THIS ISSUE
Virginia officials cite P3 pipeline
Expert pushes P3s for air transportation
Upcoming education opportunities
Other contracting opportunities
Who's winning the contracts?
News about P3s
Odds & ends
Where are they now?
Opportunity of the week
People
Calendar of events
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Virginia officials announce possible P3 projects for state

 

Lists includes long-time priorities as well as new transportation concepts

Bob McDonnell
Bob McDonnell

Long-time priority projects and new concepts for possible public-private partnership projects have been announced by Virginia Gov. Bob McDonnell. In announcing the projects, the governor noted the partnerships between the Office of Transportation Public-Private Partnerships (OTP3) and public sector partners will offer "the very best of government and private sector innovation and financing." 

 

The project list includes "candidate" projects and "conceptual" projects. The conceptual projects are multimodal projects that will sync private sector partners and state agencies such as the Virginia Commercial Space Flight Authority, the Department of Motor Vehicles and the Department of Transportation.  

 

Sean Connaughton
Sean Connaughton 

Some of the candidate projects include I-95 corridor improvements, regional traffic operations centers, improvements at the Port of Virginia, I-66 corridor improvements and I-64 Peninsula improvements.

 

Among the conceptual projects are I-495 express lanes extensions, advertising and sponsorship opportunities, rest area enhancements - some with electric car charging stations and some with truck parking facilities - cell towers and fiber optic opportunities, privatization of parking facilities and Route 460 business corridor improvements.  

 

Transportation Secretary Sean Connaughton said the OTP3 will "focus on identification, development and delivery of P3 projects across all modes of transportation in Virginia." He said the agency is responsible for ensuring an environment that encourages the use of P3s and then implement those projects. To view the PPTA pipeline, click here.

 

Aerospace expert cites nation's air transportation needs

 

Says public-private partnerships can provide new source of revenue for projects

Clay Jones
Clay Jones

Rockwell Collins knows aerospace. The company is a pioneer in the design, production and support of the aerospace industry. And Rockwell Collins President and CEO Clay Jones says a new way of thinking is necessary to modernize the United States air transportation system by 2020.

 

At a recent Radio Technical Commission for Aeronautics symposium, Collins encouraged officials in the industry to turn to public-private partnerships (P3s) to help implement NextGen quicker. Non-traditional approaches such as P3s are the answer, he said.

 

Collins pointed to the country's use of public-private partnerships for transportation infrastructure. He noted that highways, bridges and tunnels are often now owned by the private sector instead of government. He also pointed out that other P3 agreements have led to new sources of revenue without raising taxes. Just like the country's aging and deteriorating highway infrastructure, Collins said the nation's aviation infrastructure also is suffering from age.

 

The aviation expert said if the current air transportation infrastructure is not modernized to meet the needs of the 21st century, the result will be "overcrowded skies and airports that will hamstring everything from commerce to personal travel with recurrent delays."

 

Collaboration Nation

Upcoming education opportunities

 

New York City planning commission OK's NYU expansion program

Amanda Burden
Amanda Burden

A modified version of the New York University Greenwich Village campus expansion was approved recently by the City Planning Commission. Four new buildings will be created over the 20-year expansion program. City Planning Commissioner Amanda Burden said not only will the addition provide necessary additional space for the institution, but also provide open space and other benefits for the community. This plan differs from the original in that plans for a hotel were removed, commercial space from loft blocks was removed and the height of two of the four buildings planned were reduced. A temporary gym was also removed from the plan and a playground will be kept in place until 2019, when it will be replaced. The plan includes more than 2 million square feet of new construction. A 60-day waiting period will occur before the review by the City Council, with public hearings to be held prior to the council vote.

 

Arizona's largest school district to ask voters to OK $230 million bond

The Mesa Public Schools system in Arizona, the largest in the state, has voted to put a $230 million bond proposal before voters in the fall. The bond proceeds would go toward repairs to numerous older buildings, purchase of new buses and addition of new classroom technology. Six of the building in question were built in the 1950s and 10 in the 1960s. In the meantime, school officials are planning to use $750,000 in general funds to make repairs to school sewer lines and to make ceiling repairs at the Mesa High gymnasium.

 

Regents approve design for UAF engineering building

Doug Goering
Doug Goering

Preliminary plans for a five-story, $108.6 million new engineering department building have been approved for the University of Alaska-Fairbanks. Although construction is not expected to begin until 2013, the university already has about half of the funding for the project secured, including a $46 million appropriation by the Alaska Legislature. "It'll bring our laboratory facilities into the 21st century in a big way," said Doug Goering, dean of the UAF College of Engineering and Mines. The department has nearly doubled in size since 2006, but facilities have not. Studies last year indicated the department was in need of an additional 50,000 square feet. The state is constantly in the need for engineers, which has given the university even more incentive to grow the department. The Alaska Department of Labor indicated some 50 additional engineers will be needed in the state through 2018 and an additional 70 more to replace those that are retiring or leaving the state. The current facilities have stymied UAF from adding chemical engineering and other majors.

 

SPI Training Services

Other upcoming contracting opportunities

 

$600 million bond proposal recommended by Dallas city manager

Mary Suhm
Mary Suhm

With Dallas Mayor Mike Rawlings saying "the basics are important," the Dallas City Council heard a recommendation for a major bond program that would include such issues as drainage improvements, street repairs and economic development. City Manager Mary Suhm presented her recommendation for a $600 million bond proposal that includes $221.2 million for street improvements, $323.8 million for flood, drainage and erosion projects and $55 million for economic development. Among the proposed projects: an underground tunnel to alleviate flooding, upgrades to the Able Pump Station, resurfacing or reconstruction of nearly 150 lane-miles of streets and arteries, alley improvements, bike lanes, hike and bike trails. The remaining money, $55 million, would go toward economic development projects, including improvements related to the University of North Texas and extending Colorado Boulevard in west Oak Cliff to facilitate development there. To view the complete list of recommendations from Suhm, click here.

  

Long Beach port budget includes $742 million for capital projects

The Long Beach Port budget recently approved includes $742 million for a variety of capital projects. Those funds are part of an overall $942 million budget, a 12 percent increase over last year's. Two projects will take up the bulk of the capital project spending - the Middle Harbor Terminal Project and preliminary work toward replacing the Gerald Desmond Bridge. Officials expect that some $4.4 million will be spent on capital projects in the next few years alone.

 

Four Louisiana state agencies moving toward privatizing some services

Four Louisiana state agencies - the Office of Student Financial Assistance, the Office of the Secretary of State, the Louisiana State University Health Sciences Center and three units of the Department of Health and Hospitals - are studying the possibility of reducing their staff and hiring private sector contractors to perform some services currently being handled by state workers. The Office of Student Financial Aid, which administers college scholarships and other financial aid, said it could lay off up to 46 current employees if services in the student loan collection office are privatized. The health and hospitals agencies proposed reducing dietary services at its 24-hour facilities of the Office of Behavioral Health, Office of Aging and Adult Services and Office of Citizens with Developmental Disabilities. Those changes could save about $11 million, according to state officials. The Attorney General's Office is proposing outsourcing security services at the Old State Capitol and the State Archives Building in Baton Rouge. The LSU hospital is seeking to outsource environmental services. Before a decision is made, more information relating to jobs lost, cost of contracts with private sector vendors and expected savings from outsourcing will have to be examined.

 

California expected to begin work on double-track for rail corridor

Jerome StocksThe first phase of construction on the Sorento-to-Mirimar, California, double-track project will begin soon, according to officials of the San Diego Association of Governments (SANDAG). The first phase includes 1.1 miles of second track to be built parallel to the existing track. It should be completed by the end of next year. The project includes replacement of a more than 50-year-old wood trestle bridge and addition of retaining walls. The goal of the project is to speed up passenger and freight trains on the corridor, where more than 50 trains already operate daily. The addition of more double track will "help reduce travel time and accommodate the growing demand for passenger and freight services in the region's North Coast Corridor," said SANDAG Chairman and Encinitas Mayor Jerome Stocks. A second phase will add 2.1 miles of double track and straighten out some curves that are leading to lower speeds that cause bottlenecks. Phase one is expected to cost $43 million, with $29 million of that coming from a half-cent sales tax program. Half of the current Los Angeles-San Diego-San Luis Obispo corridor is already double tracked with more than 10 additional miles to be added over the next five years. Officials expect SANDAG to spend around $800 million on the county's portion of the project over the next 20 years. 
 

Variety of contracting opportunities available in El Paso area

A number of contracting opportunities are currently available in the El Paso, Texas, area. They include:

  • The Texas Department of Transportation is requesting bids for pavement markings for US0054, SH0020, FM0076 in El Paso County.
  • El Paso County is requesting bids for heating and cooling filters for El Paso County Sheriff's Department (rebid).
  • El Paso Water Utilities is requesting bids for Hueco Bolson wells and associated collector lines equipping wells Nos. 25A, 208, 312, 525,526 and 527.
  • The city of El Paso is requesting bids for Bendix Proprietary Air Brake devices for the mass transit department (Sun Metro). 
Headlines from around the nation

 

As state revenues recover, health costs remain a burden

 

Florida gears up for opening of Panama Canal

   

(To view these stories, click here and look under "Around the Nation.")

 

Who's winning government contracts?

 

Check out these recent awards:

  • Pennsylvania Breaker LLC has been awarded a $1.6 million contract by the city of Austin, Texas, for the purchase of 145kV dead tank circuit breakers for use at Austin Energy substations.
  • Better Health has been awarded a $36 million contract by the Florida Agency for Health Care Administration for a health plan to transition rural Medicaid patients and their doctors into a managed care system.
  • Texas Descon Construction has been awarded a contract of just over $9 million by the city of Pharr, Texas, for an aquatic center that includes a flume body slide and a lazy river ride.
  • CSC won a contract worth $91 million from the U.S. Department of Transportation's Federal Aviation Administration to implement a cloud software-as-a-service solution for its Enterprise Messaging System in a one-year base period and six option years.
  • Auch Construction Company has been awarded the construction contract by the Brighton, Michigan, school district to oversee an $88.4 million bond project that includes major technology upgrades, a new high school pool, athletic facility upgrades, new roofs and roof repairs to schools and assorted other repair and maintenance projects throughout the district.
  • Westfield Concession Management has been awarded a 17-year concession contract by the Los Angeles International Airport to develop, lease and manage restaurants, beverage stands, retail shops and some passenger services at three terminals.
  • Harris Corp. has won a two-year, $19 million contract to install secure wireless infrastructure at 26 Department of Veterans Affairs hospitals and will design, install, validate and provide employee training for Cisco Systems 802.11g routers and access points at the facilities.
  • Overdrive Inc. has won a $2.2 million contract from the city of Austin, Texas, to increase the amount of digital material available on loan through the Austin Public Library Web site.
  • Magruder Paving LLC has been awarded a contract for $1,493,235 by the Missouri Department of Transportation for pavement improvements in Mississippi County, including the addition of a thin-lift overlay on Route 80 in two disconnected sections from east of Route AA to Belmont, on Route 77 in two disconnected sections near Wyatt and Dorena, and on Route 102 from south of Route 80 to Route A near Dorena.
  • Kaufman Lynn Construction was selected by Florida Atlantic University as construction manager for the site development and construction of a $10.5 million, 1,000 car parking garage to be located on the university's Boca Raton campus.
News about public-private partnerships (P3)

 

Public-private partnership sought for Georgia Northwest Corridor

The Georgia Department of Transportation (GDOT) is seeking bids from qualified vendors interested in design, build and finance options for the nearly 30 miles of I-75/575 Northwest Corridor. Among the improvements in the project is the addition of reversible managed lanes and extending the existing high occupancy vehicle lanes north along I-75 and I-575. Although the successful bidder will finance, design and build the roadway, GDOT will retain responsibility for operation and maintenance of the toll road. Deadline for vendors to register their interest in the project is July 19.

 

Montclair State enters into P3 partnership with energy company

Susan Cole
Susan Cole

"The new CHCP plant is not only an example of the University's entrepreneurial management of its scarce financial resources, it also reflects our campus-wide commitment to environmental conservation and alternative energy," said Montclair State President Susan A. Cole. She said the agreement is not just an example of the university finding alternate funding sources, but also "reflects our campus-wide commitment to environmental conservation and alternative energy."The project includes the design, construction, operation and maintenance of the plant on property leased from the university for 30 years through a state-approved P3 agreement. The plant will provide natural gas-fired electric generation and chilled water will be delivered to and returned from campus buildings by way of a new energy distribution center. Most of the university's electric needs will be satisfied by the plant.Montclair State University is hoping its public-private partnership with energy company Energenic-US, LLC will net a big savings from replacing the university's heating and cooling system without construction funding from the university or the state. Under the agreement, a new combined heating, cooling and power system (CHCP) will be developed for Montclair State, resulting in more environmentally responsible energy services for the university. Energenic-US, LLC has been a long-term partner with DCO Energy LLC and Maria Energy LLC. The $90 million partnership will result in a state-of-the-art facility and related infrastructure that will replace the current energy plant built in the 1940s. The project is expected to return a more cost-effective, efficient and reliable method of delivery of heating, cooling and electrical services. This will be Montclair State's second P3 agreement.

 

Private firm enters partnership with university for cybersecurity graduates

Northrop Grumman is entering into a partnership with the University of Maryland to seek to groom students for degrees related to cybersecurity. NG will put $1.1 million into an undergraduate program that will begin in the fall. It is yet another example of public-private partnerships aimed at ensuring a skilled workforce for emerging industries. In addition to the funding, NG will also provide staff members, guest speakers and mentors to assist with those who enter internship programs. The program, Advanced Cybersecurity Experience for Students, is hopeful to enroll 45 freshman students its first semester. The program is expected to include six courses and supplemental honors-level classes for students with primary fields of study such as business, engineering and psychology. A new dorm will be constructed for the students, as well as a computer lab. Many private sector firms such as NG report they are already seeing benefits of the academic partnerships between universities and the private sector.

 

May 2012 Tx Bond Election

Odds & ends

 

Texas

  • The city of Laredo is requesting bids for demolition work.
  • The University of Texas System, Austin, is requesting qualifications for outside counsel.

New Mexico

  • The U.S. Air Force, Holloman AFB, is requesting bids for cost per test analyzer.
  • The U.S. Forest Service is requesting bids for 2012 CDT Trail Construction at Silver City Ranger District in the Gila National Forest.
  • The New Mexico Institute of Mining and Technology, Socorro, is requesting bids for steel-framed building curtain wall.
  • The city of Truth or Consequences is requesting bids for demolition of Youth Center Building.

Illinois

  • St. Joseph-Ogden Consolidated High School District #305 is seeking specific proposals from interested Energy Services Companies (ESCOs) which are capable of providing comprehensive infrastructure and energy-related capital improvement services.
  • The Illinois Department of Transportation is seeking bids for the design and construction of a permanent pre-engineered salt storage building at the Pontiac traffic facility in Livingston County capable of storing 10,000 tons of salt and including lighting and a concrete structural wall. The designer will be responsible for analyzing existing salt storage facility manufacturers, providing a life-cycle cost analysis for each type and a recommendation for the preferred type of structure.
  • The Illinois Community College Board is seeking bids to construct a 130,000-square-foot transportation, distribution and logistics center at Olive-Harvey Community College in Cook County, including classrooms with curriculum driven technology and space for automotive technology and training, collision repair, diesel engine technology, aviation mechanics, supply chain management, which includes large warehouse and distribution simulation labs, taxi and truck driver and forklift training, service vehicle and equipment area, faculty offices and general use space for students. It also includes site improvements including upgrading site utilities, subsoil testing and remediation and constructing approximately 800 parking spaces. Minimum LEED silver rating.

Kansas

  • The Kansas Highway Patrol is seeking bids for construction of a driving range garage at an estimated cost of $500,000.

Wisconsin

  • The Jackson Correctional Institute/Department of Corrections in Black River Falls is seeking bids for replacement of grease traps.
  • The University of Wisconsin Madison campus is seeking bids for an all-season softball practice facility.
  • The University of Wisconsin La Crosse campus is seeking bids for replacement and installation of five existing scoreboards (Stadium, Women's Soccer Field, Women's Softball Field, Men's Baseball Field and at the Mitchell Hall Natatorium) with new pre-purchased scoreboards.
Did you miss TGI?

Where are they now?
 Are you a government official who has moved into a new position or to a new agency? Did you recently retire? Were you recently named to an executive-level position at a state-supported college, university or community college? Have you secured a new job as superintendent of a public school? If so, we'd like to hear from you - and so would your friends and colleagues - for our "Where Are They Now" column. Just drop us a line at editor@spartnerships.com and let us know about your previous job and where you are now. This week we feature Gale Given.

 

Gale GivenGale Given earned a bachelor's degree in mathematics and a master's degree in business administration from Marshall University. She began her information technology career in 1979 at C&P Telephone of West Virginia in the central office engineering organization. In 1987, she moved to Bell Communications Research, where she worked on national issues. She then began working for Verizon on regulatory issues. She was promoted to president of Verizon West Virginia. In 2003, she was named regional president of Verizon's Great Lakes region, holding that position until 2008. After that stint, she became president of Verizon Pennsylvania and two years later was chosen as president of Verizon's regional office that covers Delaware, Pennsylvania and West Virginia. She served in that capacity until December of last year, when she announced her retirement, ending 32 years of service at Verizon. Given was recently tabbed to become West Virginia's Chief Technology Officer. She replaces Kyle Schafer, who stepped down in March to take a private sector IT consulting job. As CTO, Given holds the state's top IT position and is in charge of the Office of Technology. She will be responsible for setting IT policy and is in charge of enterprise initiatives related to computer systems.

 

Opportunity of the week...

 

Construction and renovation projects totaling $41 million are planned for several Veterans Affairs facilities in Maryland. Want to know more? Contact Reagan Weil at 512-531-3900 or rweil@spartnerships.com.

 

People

 

Jason DeHaanMike LewisSusan CastilloJason DeHaan (top left), Chicago's Chief Information Officer who has served in that position since November 2010 and worked his way up through the city ranks, including a stint as deputy CIO, has resigned his position. Dr. Mike Lewis (top center), secretary of the West Virginia Department of Health and Human Resources for the last 18 months, has announced he will step down due to medical reasons. Susan Castillo (top right), superintendent of Oregon schools, has announced she will leave her post at the end of the month more than two years before her term ends to take a position with a national education nonprofit. Tim Connellan, superintendent of Bethany, Connecticut, schools and former director of student services in North Haven, is the frontrunner for the position of superintendent of the Oxford schools. Richard Rose, former D'Iberville city manager and currently serving as a consultant for the City of Diamondhead, Mississippi, has been named Diamondhead's new city manager. Massachusetts educator Debra Dunn, principal for the Weston Public Schools in Weston, Massachusetts, has been chosen by superintendent of the York School District, replacing Henry Scipione, who is retiring. Ellen Rosenblum (middle right), former state district judge, has been tapped by Oregon Gov. John Ellen RosenblumPaul WaltersPeter WeilerKitzhaber to be the states next Attorney General, replacing John Kroger, who will step down later this month. Paul M. Walters (middle center), a member of the Santa Ana, California, Police Department since 1971, has been appointed by the City Council to serve as police commissioner and city manager. Peter Weiler (middle left), who has had oversight of the fundraising arm of the University of New Hampshire, has been named vice president for university relations at the University of Maryland and president of Maryland College Park Foundation. Dr. Linda Reviea, formerly deputy superintendent in the city Poquoson, Virginia, has been selected as the new superintendent of the Staunton schools, taking over for interim superintendent Ed Clymore. Chris Aulbaugh, a 26-year law enforcement officer and current commander in the Special Investigations Division for the Dallas Police Department, will be the police chief for the city of Kaufman, Texas. Richard Wainio, who has served as director of the Port of Tampa, one of the busiest in the nation, has announced he is leaving the job after more than seven years. Jose Aviles (bottom left), director of admissions at Millersville University in Pennsylvania and who has worked in similar positions at a number of mid-Atlantic region institutions, has been named director of Jose AvilesSilver RodriguezMichael Keefeadmissions at the University of Delaware effective July 16. Capt. Silver Rodriguez (bottom center), a 32-year veteran of the Porterville Police Department, has been named the new police chief for the City of Sanger, California, leaving his post as captain of Special Services in Porterville. Michael Keefe (bottom right), a member of the San Mateo Fire Department since 1986 and current deputy fire chief, was named fire chief of the San Mateo-Foster City Fire Department, replacing the outgoing Dan Belville. Rajeev Bukralia, an administrator with Black Hills State University in South Dakota, has been appointed associate provost for information services at the University of Wisconsin-Green Bay, and will also serve as Chief Information Officer. Jesus Antonio Lopez, a career banking professional who most recently was a senior relationship manager for Citibank, has been named CFO of the Yonkers Industrial Development Agency. Former Phoenix Assistant Fire Chief Bobby Ruiz, a 37-year veteran with the department who retired last December, has been selected as the new fire chief in Peoria, Arizona, replacing Thomas Solberg, who resigned.

 

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GMIS International - "Connect with IT Leaders from Around the Globe"

GMIS International, the premier organization for public sector IT leaders, will hold its Annual Conference August 19 - 22, in Chicago, Illinois. The conference brings together public sector technology leaders and decision-makers representing a wide variety of government agencies from throughout the United States. Representatives from international organizations will also attend and provide updates on technology initiatives in their respective countries. Don't miss this incredible opportunity to interact in the heart of downtown Chicago. To learn more about sponsorship and exhibitor opportunities, click here.

 

USP3 Training Institute announces 2012 schedule

The U.S. P3 Training Institute is planning three additional training schedules following its March session in Sacramento. Additional training is scheduled in New York for July 12 and 13 and in San Juan, Puerto Rico, on Oct. 18 and 19. These two-day courses are for government officials, contractors and investors seeking to understand P3 concepts and methodologies. The course is for anyone managing or planning P3 projects. It is an education course, not an industry event, and focuses on P3 methodologies and concepts, not on selling one approach or product. Trainers are P3 practitioners and experts in their fields. There will also be opportunities for networking. Among the topics are how to identify P3 projects and develop a project pipeline, how to set business terms and optimize risk transfer, managing the P3 procurement process and much more. Lead trainers are Brien Desilets, a P3 specialist with more than 15 years of experience and managing director of Claret Consulting, and John Buttarazzi, a P3 professional and founder of Liberty Hall Advisors LLC. For more information and to register, click here.

 

One-day P3 workshop slated in Connecticut for June 14

"Implementing Public-Private Partnerships in Connecticut" is the title of a one-day workshop being organized by the State of Connecticut, the Center for Public Policy & Social Research at Central Connecticut State University and the National Council for Public-Private Partnerships. The event is scheduled for Thursday, June 14, at Central Connecticut State University, New Britain, CT. This workshop will cover the new statute for state-owned properties and provide townships and cities with methods for addressing public needs through the use of public-private partnerships. To view the agenda, click here.

 

Association for Demand Response, Smart Grid plans meeting

The Association for Demand Response and Smart Grid (ADS - formerly DRCC) will hold its National Town Meeting on Demand Response and Smart Grid on June 26 - June 28 at the Ronald Reagan Building, 1300 Pennsylvania Ave., N.W., in Washington, D.C. The event focuses on the business and policy aspects of demand response and its enabling technologies and applications. In addition to a conventional format of presentations on case studies and the latest research, it devotes an entire day to a roundtable discussion format where some of the leading experts in demand response discuss with each other and with the audience the latest trends, issues and business developments. For more information contact: Jenny Senff at Jenny.senff@demandresponsesmartgrid.org.

 

InfraAmericas plans eighth annual US P3 Infrastructure Forum

The eighth annual US P3 Infrastructure Forum, sponsored by InfraAmericas, is slated for June 19-20 at the Metropolitan Club, New York City. This year's conference will feature a multi-stakeholder audience of transportation leaders, public officials, policy makers, legislators, private sector developers, GP-managed infrastructure funds and institutional investors including labor union and public pension plans. They will discuss the latest industry trends, new project opportunities, public policy issues, funding sources and the ins and outs of P3 investing. The conference will include panel discussions and keynote addresses, together with networking opportunities including lunches and cocktail receptions. For more information, click here.

 

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