Miami — Streetcar PPP

Rail Transit Online, June 2007

Top city officials are touting a public-private partnership (PPP) as a possible financing mechanism for a proposed $200 million downtown streetcar project.  Miami’s chief financial officer, operations director and assistant transportation coordinator visited government representatives in two European cities and spoke with potential investors about the scheme and came back optimistic that a PPP could be successful in Florida.  “The financing vehicle they use to deliver a lot of their facilities has not been used in the United States at all,” CFO Larry Spring told Miami Today.  “In this structure, there are safeguards built in, a way for governments to control and share the risks with developers of projects.”  Once the city commission passes enabling legislation, officials hope to issue a request for proposals this fall for a build-operate-maintain deal.  A contract is expected to be awarded in December 2008 followed by revenue service in December 2011.  The city's share of the capital cost would be funded with federal grants, the transportation sales tax and revenues and interest generated by the streetcar system.  Meanwhile, one potential bidder has already come forward.  Grupo Soares da Costa SGPS of Portugal has confirmed it plans to assemble a consortium to bid on the three-line streetcar.  The city is currently conducting a detailed engineering analysis, seeking possible funding sources and refining cost estimates.