What is the Value for Money Study?
ODOT and KYTC are conducting a Value for Money (VfM) study to explore financing and delivery options for a new Brent Spence Bridge Corridor. The VfM will compare potential ways to build the new bridge: traditional project delivery, where ODOT and KYTC retain the project delivery risk, and alternative delivery methods, where a private sector party assumes all or some of the project delivery risk (commonly known as public-private partnerships (P3)). The study should allow decisions to be made as to which delivery option provides the overall best value-for-money over the life of the project. Infrastructure projects like this one are major undertakings, and it is vital that all parties involved do their due diligence to find the right delivery approach. A VfM analysis will review current and future costs and revenues associated with the project, including:
Financing Costs: The financing options available, and the cost associated with financing raised to build the project;
Operations and Maintenance Costs: The costs to operate and maintain the project over the long-term; and
Risks: Risks associated with designing, financing, constructing, operating and maintaining a new bridge.
Final results will not be known until the VfM study is finished in the spring of 2013. The ultimate goal of the VfM team of advisors – HNTB, KPMG and Steer Davies Gleave – is to make an objective and thorough recommendation to ODOT and KYTC that provides the best overall value to the Greater Cincinnati area.
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