Arizona DOT Announces First Public Private Partnership to Save Department Dollars, Improve Services

AASHTO Journal, 11 October 2013

Arizona Department of Transportation Officials recently announced that the department’s 14 rest areas are now managed under one contract to mark ADOT’s first active public private partnership, which will both generate revenue for more roadway projects and improve the customer experience for rest area users.

ADOT contracted with Infrastructure Corporation of America, which will take over maintenance and operations of the rest areas for five years (which began on Oct. 1). The PPP will also allow for the implementation of a sponsorship and advertising program, which will generate an estimated $1 million over the next 10 years that will go into the State Highway Fund for transportation projects.

Rest area users will also benefit from the PPP. ADOT said that under the contract, Infrastructure Corporation of America will be able to pursue new features such as Wi-Fi access, dog walking areas, charging stations for electric vehicles, and ATMs, while also providing on-site staff for 16 hours each day.

“I am pleased to see ADOT’s first public-private partnership get underway,” said ADOT Director John Halikowski in a statement. “This project shows that it’s possible to fund transportation projects with non-traditional funding sources. This partnership is an innovative approach to both business and transportation in which everyone benefits, especially those who use Arizona’s rest areas. Public-private partnerships are becoming more common in moving transportation projects forward as transportation funding decreases, both in Arizona and on a national level.”

Previously, ADOT managed all the rest areas under 14 different contracts with a private company. This new method streamlines the process and makes the process more efficient, allowing ADOT to manage costs more effectively.

Additional information on ADOT’s PPP program is available here.

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