Public-Private Partnership
In 1995, the Virginia General Assembly established the Public-Private 
Transportation Act (PPTA) to encourage private businesses to build, operate and maintain roads and assist with other transportation needs.
With this new legislation in place, the Virginia Department of Transportation (VDOT) began working with a private firm in 1997 to build Pocahontas 895 to meet the need for a link between southern Chesterfield and eastern Henrico Counties. The road was completed in 2002.
Transurban's Role
In 2006, the Commonwealth of Virginia selected Transurban to manage, operate and maintain Pocahontas 895 under a public-private partnership agreement (PPP or P3). Although the concession agreement grants a 99-year lease to Transurban, VDOT will continue to have ownership and oversight of Pocahontas 895.
This arrangement under Virginia's PPTA was the first of its kind in the Commonwealth and - at the time - only the third of its kind in the nation.
As part of this public-private partnership, Transurban has:
- Committed to finance and build the Airport Connector, which will directly connect Pocahontas 895 with Richmond International Airport. The Airport Connector Road is expected to be completed in 2011.
- Paid off all existing debt for the Pocahontas Parkway Association (to build Pocahontas 895, a non-profit association issued $324 million in bonds to finance construction).
- Taken responsibility for the Pocahontas 895's costs and management, including upgrading electronic toll equipment and setting toll limits.
- Reimbursed VDOT's costs to operate, maintain and repair Pocahontas 895.
- Will share revenues with the Commonwealth of Virginia, if the facility is more profitable than expected.
Benefits of the Agreement
Transurban's concession agreement with the Commonwealth:
- Saves Virginians money as no state taxes are used to support the ongoing maintenance of Pocahontas 895.
- Saves state taxpayers more than $240 million in future maintenance costs.
- Frees VDOT to focus on and pursue other transportation needs.
- Encourages more public-private partnerships in the future - potentially saving taxpayers and the government even more money.