Maryland supports reduction of costs of Purple Line P3 project

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Maryland supports reduction of costs of Purple Line P3 project

This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

Maryland Transportation Secretary Pete K. Rahn has advised Governor Larry Hogan to approve the Light Rail (Purple Line) P3 project if the cost is cut approximately by US$300 million. As of now, the total project investment is estimated at US$2.45 billion.

According to Mr Hogan, in June the state will announce whether the project is approved or not.

During last month sorces said that the project could be developed for a 10 % less than the previous estimated. It also was reported that the administration found ways to save about US$55 million per year in operation and maintenance (O&M) costs. A reduction in the number of stations or in the frequency of trains could involve these reductions.

The project involves the development of a 25.75 km light rail line that would run east-west inside the Capital Beltway between Bethesda in Montgomery County and New Carrollton in Prince George's County. The new line would includes the construction of 21 stations that would provide direct connections to Metrorail's Orange Line, Green Line and two branches of the Red Line, and the MARC Brunswick, Camden and Penn Lines.

If the projects goes ahead, it will be developed on a design, build, finance, operate and maintenance (DBFOM) basis. The PPP contract will have a period of of 35 years. The project also involves the supply light rail vehicles.

In early January 2014 four teams were shortlisted: Maryland Purple Line Partners, Maryland Transit Connectors, Purple Line Transit Partners (PLTP) and Purple Plus Alliance LLC Proposer. Later in July the Maryland Department of Transportation together with the Maryland Transit Administration launched the RFP for the project.

The deadline to submit proposals was extended twice, in mid December from 9 January to 12 March and in February from 12 March to mid August.

During this month we have reported about several PPP projects in North America:

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