How should the state make determinations on development costs, timelines, and usage? Why do these projects often fail?
How should the state make determinations on development costs, timelines, and usage?
This is a hypothetical scenario. The Governor of Ohio recently attended a conference on mass transit. He is convinced that the pathway for future development in Ohio depends on a robust public transit system to connect Ohio’s major cities. The Governor recently announced the C3-P3: Cincinnati-Columbus-Cleveland Public-Private Partnership Train Network. This $1.5 billion train network will operate as a PPP. The Governor was recently quoted, “Engaging the private sector to build and operate a light rail system and bullet trains to connect our cities is the key to long-term growth. The private sector will assume the greatest risk and reap reasonable profits for operating this rail network.”
You work as a legislative aide to a State Senator from Columbus. She is skeptical about this proposed project and private sector involvement. She has a lot of questions: “How well do mega-projects perform generally? Rail? Are they developed on time? On budget? And used by riders? How should the state make determinations on development costs, timelines, and usage? Why do these projects often fail?” She has asked you to prepare a two-page memo to her outlining the keys to successful mega-projects, especially rail projects.
Starting on the next page, prepare a two-page, single spaced memo in Times New Roman, 12-point font. In this memo, address the assumptions raised by the Governor and questions raised by the State Senator. Conclude with your policy and management recommendations for the State Senator.
