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| Public-Private Partnership of California MAGLEV |
The project will be developed and operated within a partnership that includes public sector agencies and the private sector. Underlying the outstanding partnership opportunities of the California Maglev Project is the project's very high ridership and revenue potential. State legislation to establish a framework for the public-private partnership was approved by the Legislature in 1999. While the bill was not signed into law, the Legislature’s approval of the California Maglev Project and public private partnership approach provides a basis for further work to place Maglev into operation.
Under the proposed public private partnership, public agencies will provide the “entitlements” required to build and operate Maglev as a self supporting system, capable of covering all operating and most, if not all, capital expenses from internal operating revenues. The lead public entity will complete the environmental clearance process and secure the key inter-agency agreements that are required to provide the public rights-of-way for the project. The public partners will provide the federal loan guarantees and tax-exempt financing mechanisms that are integral to the project financial plan.
The private partners will take responsibility for designing and building the Maglev system within the parameters of a franchise agreement with the public partners. The private partners will operate the system. In response to an initial call for expressions of interest from private firms to join the partnership, over 60 firms responded with letters of interest. |
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| MAGLEV Alliance |
Dec 31 2002 |
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