The managing authority for Los Angeles International Airport has allowed bidders for a light rail PPP to consider how new US tax legislation will affect project costs by extending the financial proposal deadline until 16 January.
A spokesman for Los Angeles World Airports, a Los Angeles agency managing the airport, said the new deadline is to allow three shortlisted bidders to understand how the tax reform bill may alter cost projections for an estimated $3 billion automated people mover PPP. The original deadline was 22 December, the same day President Donald Trump signed into law legislation rewriting the US tax code.
“Since on 20 December the new federal tax legislation was passed, it was decided to let proposal teams look at the impact of that legislation on their proposals,” said LAWA spokesman Mark Waier. “When major tax legislation occurs, it requires a second look to make sure you cover everything.”
He added that extending the proposal deadline won’t affect the procurement timeline and said a winner should be recommended by mid-February.
Three consortiums have expressed interest in bidding on the project: Gateway Connectors (Kiewit, Meridiam and Skanska); LAX Connecting Alliance (OHL Infrastructure, Acciona Concesiones, Star America Fund, Aberdeen Global Infrastructure, Axium Infrastructure and Charles Pankow Builders); and LINXS (Fluor Enterprises, Balfour Beatty, Hochtief and ACS Infrastructure Development).
The automated people mover PPP is part of the $5.5 billion Landside Access Modernization Programme, which is planned to relieve traffic congestion, increase passengers from around 75 million to 79 million annually and provide for easier transit connection. The programme is being procured through PPP initiatives.