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This credit rating agency states that the Progressive P3 model chosen by Alto will help the project avoid the pitfalls by other similar large infrastructure projects due to the co-development phase helping de-risk the construction phase.
It also referred to the challenges faced by California HSR. It states that the construction contracts for CAHSR were awarded when only 15% of the engineering design was completed, which contributed to the significant delays and cost overruns of the project.
How the Progressive Public-Private Partnership Model Can Help Make Canadian High-Speed Rail a Reality
A project can achieve much higher design maturity through the co-development phase, more than 90% before ground breaking versus around 30% under a traditional PPP procurement. A much more advanced design helps the construction contractor accurately predict its price.
https://dbrs.morningstar.com/docume...aMjhrJbxaECfM2fLw__&Key-Pair-Id=KNWV36WLG7L4JBecause both parties have spent much more time in collaborations before committing a fixed-price and date-certain contract, the risks of unexpected scope changes can be significantly mitigated. Both parties can also use the co-development phase to materially advance relevant permit and site plan applications, secure necessary government fundings, acquire lands, divert utilities, negotiate third-party agreements, balance the risk register, establish contingency plans, and cultivate a more collaborative relationship with other stakeholders such as the end-user groups and the local municipalities.
It also referred to the challenges faced by California HSR. It states that the construction contracts for CAHSR were awarded when only 15% of the engineering design was completed, which contributed to the significant delays and cost overruns of the project.