Knik Arm crossing moving from a concept to a contract: more than 100 participants from biggest national and international firms.

• Author: Foster, Michael
• Position: OP-ED

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Sometimes projects start off as good ideas, and stay that way, just ideas. I have good news for the vast majority of Alaskans, the Knik Arm Crossing is moving forward--from a concept into the contract phase. And we're attracting some of the biggest names in the business.

On Aug. 18, the Knik Arm Bridge and Toll Authority (KABATA) hosted a workshop and invited State, national and international development firms to listen to our update on the bridge. The level of interest at the workshop was significant, with more than 100 people in attendance, representing some of the largest national and international finance, design, construction and concession companies.

In the workshop, we outlined the Private Public Partnership or "P3" model we will be employing for the project. P3 is being used across the nation as a way to leverage private capital and expertise for public infrastructure projects. It's a method to deliver significant infrastructure with limited upfront public funds while sharing project risk with the private sector. It has become increasingly popular now that public funds are at a premium. KABATA is utilizing a P3 model in which the private-sector partner provides project finance, design, construction, operation and maintenance in exchange for an availability payment from KABATA, with payment dependent on what type of financing is received. An availability payment is a predetermined and stable payment over the lifespan of the project. Our estimates are that toll revenues will exceed the availability payment about nine years after the bridge opens.

These companies are interested in this project, for all the right reasons--first, Knik Arm Crossing been through a rigorous environmental process. The National Marine Fisheries Service issued a "no jeopardy"...