Freeway Lighting and Public-Private Partnerships (P3s)
What are the routes MDOT is considering for a P3 contract?
MDOT currently is focused on the plaza lighting (tunnels) on I-696 in Southfield and the M-10 location underneath Cobo Center. Depending on responses received from the requests for letters of interest, however, MDOT may need to broaden the scope.
Will MDOT retain the ownership of the infrastructure?
MDOT has no interest in relinquishing ownership.
Why does MDOT want to pursue a P3 contract?
There are other types of lighting available that would significantly reduce MDOT's energy usage. However, upgrades would require a substantial capital investment that MDOT can't afford at this time.
How does MDOT intend to fund the contract?
MDOT will review the responses from the requests for letters of interest and determine the length of a contract term. MDOT then will put together a financial analysis to determine if the department's typical operating costs over a certain amount of years would be able to fund the contract.
What measures will MDOT take to prevent a default on the contract and make sure the contract holder is providing the lighting services they said they would?
Adequate measures will be placed within the contract documents. The contract holder will be assessed penalties if lighting levels aren't maintained or restored within a certain amount of time. MDOT also is reviewing the assessing of penalties if traffic is impacted during peak travel times.