PPPs for Transit Oriented Development 4 Options

A look at potential project structures for use in integrated land use and mass transit projects. Four potential structures are put forward each with different profiles of public sector involvement. The dedicated pursuit of Transit Oriented Development involves significant policy challenges, implications and opportunities. Over the past decade and more, many countries and regions have moved toward the mainstreaming of PPPs. The British approach to PPPs has been adopted in other contexts such as in state-level government in Australia. While the concept emerged as a new approach to infrastructure implementation, official policies on acceptable PPP approaches and structures quickly developed a rigid outlook. Some basic PPP assumptions on the nature of partnerships, and on topics such as the allocation of risk, may need fundamental re-assessment. Transit Oriented Development (TOD) tends to involve significant input from the public sector and the private. The most effective approach to combining the strengths of each sector in major projects has long been debated, though few firm policy options have been put forward. Options for project structure are generally unclear and uncertain. The stakes are high because these projects involve long-term land use and transport changes, and the creation of new and significant living and working environments. Large financial commitments are involved. Perhaps by clarifying the options for TOD project structure we can deliver more certainty and workability and assist the progress of these projects. The paper presents four potential models for TOD projects, all of which might be regarded as PPPs (depending on the acceptable definition). The focus is on clarity in financial arrangements and management structures for effective project delivery.