Date Requested: February 12, 2016
Time Requested: 05:01 PM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
2589 Introduced SB557
CBD Subject: Roads and Transportation


Sources of Revenue:

Other Fund State Road Fund

Legislation creates:

Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The proposed legislation removes the restriction on the West Virginia Division of Highways (DOH) from entering into comprehensive agreements after June 30, 2017 as stated in the Public-Private Transportation Facilities Act. The legislation will allow the DOH to better utilize its limited financial resources while preserving the ability to capitalize on future opportunities.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0

Explanation of above estimates (including long-range effect):

    See Fiscal Note Summary above for information regarding the fiscal impact of this bill on the State of West Virginia.


    The West Virginia Department of Transportation, Division of Highways (WVDOH) has utilized the Public-Private Transportation Facilities Act to help finance three major initiatives: the Coalfields Expressway (Mullens Connector to East County Route 12/1), the upgrading of a 14 mile section of US 35 (WV 869 to Mason County Route 40), and a section of Corridor H (Kerens to US 219 Connector. The WVDOH has recently advertised a Public-Private-Partnership (P3) project for the construction of the Wellsburg Bridge. The use of the P3 project delivery allowed the WVDOH to expedite the project delivery and thus, provide for the opening of these sections of highway earlier than the traditional design-bid-build delivery method. P3 also allowed the WVDOH to reduce costs for the engineering design for the project and it provided stability in managing the agency’s cash by providing equal monthly payments to the successful bidder. This uniform distribution of cash to the bidder allowed the WVDOH to advance other smaller priority projects by not unnecessarily encumbering funds. The P3 method provided the contractor flexibility in his operations and through economies of scale, minimize project costs as well as environmental impacts. These costs, however, are difficult to compare to the traditional design-bid-build method of delivery.
    Allowing the P3 legislation to be effective after June 30, 2017, provides the WVDOH and the State of West Virginia the necessary flexibility to take advantage of future public and private sector funding opportunities. The estimated cost savings and/or revenue streams for such projects will depend very much on the particular scenario and thus, is difficult to quantify.

    Person submitting Fiscal Note: Lorrie Hodges
    Email Address: