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March 22, 2023

Maryland Dodges P3 Bullet            

According to Maryland Matters, an online publication covering Maryland Government and Politics, Australian-based Transurban announced that it was withdrawing from a public-private partnership near Washington D.C. 

The $11 billion project, first announced by former Maryland Governor Larry Hogan (R) in 2017, would replace the American Legion Bridge and add four “high-occupancy toll” lanes on portions of the Capitol Beltway (Interstate 495) and Interstate 270.

Transurban was the lead partner in a consortium known as Accelerate Maryland Partners, which was selected for the project in 2021.  The withdrawal announcement comes less than two weeks before the consortium was required to meet a key deadline and submit its design and finance plans for the project. 

In a statement, Transurban gave vague reasoning for pulling out of the project, but tellingly blamed a “changing political landscape,” among other reasons.  In January 2023, Governor Hogan’s term ended, and Democrat Wes Moore, who was elected in November 2022, took office.  Governor Wes Moore has been critical of the project, and he has sought “a change of direction in the plan.” 

The Governor said in a statement that the termination of the Phase P3 agreement does not impact the approved federal Record of Decision for the first phase of the project.  The statement went on to state that Maryland did not owe payment to Transurban because the company “executed its contractual right to not proceed” and that the state remains committed to continuing progress in a manner that ensures “social equity, environmental protection, and engagement with the local community.”

NASHTU has long advocated against the use of P3s in transportation and other public works projects.  When government allows private corporations to inject profit into public works projects, the public always loses.  In this case, as soon as the political winds changed and Transurban figured out that they couldn’t steamroll the environment and local communities, they bailed. 

It is uncertain at this time if the project will remain a P3.  NASHTU will post updates as they become available.  NASHTU urges the Maryland DOT to complete the necessary transportation improvements using traditional financing and public sector professionals for the design, construction inspection, and maintenance of the project.

Read the full article here.

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