Maryland Purple Line P3 Agreement

Maryland Gov. Larry Hogan said the agreement was an important step toward “a transformative project.” The state`s other options would have been to manage the rest of the construction itself or hire a contractor. Both options, however, would have required the state to finance the remaining $1 billion in work with the public debt. The state should also have operated and maintained the line itself or found a contractor. In another public-private partnership, the state would enter into a long-term contract with companies that would manage the rest of the construction, assist in financing, and then operate and maintain the Montgomery-Prince-George Countys line. Purple Line is a 16-mile tram line of 21 stations that will stretch from Bethesda to New Carrollton in Prince George County. The Purple Line project aims primarily to deal with severe traffic jams and improve the mobility of transit-dependent neighbourhoods, with an east-west transit option planned to complement the North-South option, currently available via the existing metrorail system and MARC lines. The project aims to reduce travel time by about 40% and eliminate approximately 17,000 trips per day. The government would repay the private debt, cover the costs of the line and pay a profit to businesses through regular payments for many years.

Jeffery D. Ensor TDD Chief of Staff and Director of the Delivery – Finance Maryland Transit Office of Transit Development and Delivery (TDD) Tel: (443) 278-7200 jensor@mta.maryland.gov Matthew Pollack, The MTA`s director general for project implementation said the state would seek a new partnership, known as P3, because companies could help fund the remaining $1 billion, then the long-term operation and maintenance of the 16-mile tram line. In its latest bid, PLTP accuses MTA of requiring its design team – which is also led by Fluor and includes Lane Construction and Traylor Bros. Construction – to “hide” delays in the 2016 and early 2017 schedules, when construction of the 16-mile tram line was hampered by a legal challenge to the project`s environmental permit. MDOT and the Maryland Transit Administration (MTA) will continue to monitor Purple Line contracts and orders until they are approved by BPW. Upon approval, Meridiam and Star America will launch a tender with MDOT and MTA for a new design contractor. The agreement between Maryland, Méridiam, Star America and Fluor marks the end of the current round of litigation between the purple Line parties and will be submitted to the Public Works Council (BPW) in December for verification and approval. Pollack declined to say how long the state will negotiate with the PLTP before canceling the talks and calling for a new partnership. Government officials also did not say how much to add an additional P3 in project delays or costs. On April 7, 2016, MDOT and MTA entered into a public-private partnership (P3) with an ad hoc vehicle consisting of several leading planning, construction and maintenance companies to facilitate delivery and improve asset performance.

Under this agreement, private partners will accept the risks of MDOT and MTA in exchange for availability payments and will complete five third-party projects that complete the completed Purple Line. Positive news about the @PurpleLineMD. Our community has sacrificed for this project, which is for our transportation, @mtamaryland must ensure that construction will restart: t.co/z7PaEWpqJk pic.twitter.com/D3qUVV8Thr In a tweet, Council member Andrew Friedson called the agreement “positive news” and said, “Our community has sacrificed so that this project, which is essential for our transportation, environmental and economic goals, is called into question.” Earlier this year, Purple Line Transit Constructors, the lead contractor responsible for the design of the project, left the project with increased costs following third-party complaints, delays in the purchase of legislation, and regulatory and third-party agreements after the project was underway.