Trenton, N.J. — New Jersey Governor Phil Murphy signed into law Senate Bill No. 865, establishing a Public-Private Partnership (P3) program to allow for the repair, restoration and improvement of New Jersey’s infrastructure. The bill will enable the use of P3s for certain building and highway infrastructure projects as a means to encourage private investment to deliver needed assets to New Jersey’s taxpayers.
A P3 is a procurement model that uses an integrated approach to deliver infrastructure; incorporating design, construction, financing, operations and maintenance functions into the contract. This method is lauded for its life-cycle approach to procurement, optimizing taxpayer value and public benefit through risk transfer opportunities and transparent processes.
The Association for the Improvement of American Infrastructure (AIAI) worked closely with several key organizations to ensure that best practices and taxpayer protections were incorporated into the statute. Jack Kocsis, President of the Associated Construction Contractors of New Jersey, was a key driver of the legislation and commended New Jersey Senate President Stephen M. Sweeney (D, 3rd), the bill’s principal sponsor, for his support for this initiative. “The statute has the potential to create additional work opportunities for the contracting community and our labor partners that may not otherwise happen. In addition, the recently passed legislation contains strong, time-tested contractor and labor protections.”
AIAI’s Board of Directors, headed by Chairman William Marino, have been steadfast supporters of broadly enabling P3s for New Jersey. The bill allows local and state officials to evaluate and utilize this accelerated project delivery method, enabling development and reconstruction of courthouses, bridges, schools, transit systems, parking facilities and other public works projects to support New Jersey.
The P3 program will enable New Jersey to design, construct, develop, deliver, finance, operate and maintain much-needed public works projects more efficiently. The flexibility to leverage private participation in public works development and investment will facilitate economic development opportunities and create local and regional jobs.
During the bill signing ceremony, Executive Director of AIAI, John Parkinson, commented, “This is a welcome and meaningful step forward to support modernization and anticipated growth in the state.”