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TDOT says TMA gives ability to leverage private capital; first revenue-risk P3 near commercial close
Summary
Commissioner Reed told the committee the Transportation Modernization Act enables TDOT to leverage private-sector capital for major projects and that TDOT expects commercial close on its first revenue-risk public-private partnership (P3) this fall, a procurement TDOT says could deliver a multibillion-dollar project without direct state outlay.
Commissioner Will Reed told legislators that the Transportation Modernization Act (TMA), passed by the General Assembly in 2023, enables TDOT to leverage private capital and that the department is approaching commercial close on its first revenue-risk public-private partnership (P3) later this year.
"We will get to commercial close on our 1st revenue risk P3," Reed said, adding that there is strong private-sector interest in investing in Tennessee transportation. Reed and members discussed whether P3s are counted in the backlog; Reed said P3s are included in the need calculus and that a delivered $4 billion P3 would reduce the backlog by the same amount. He cautioned that not every project is suited for P3s but said the tool expands delivery options when a private partner can bear revenue risk.
