Virginia Shows How Not to Do Public-Private Partnerships

A public-private partnership to build a tunnel connecting Norfolk with the city of Portsmouth under the Elizabeth River in Virginia has gone awry, saddling the public with increasing costs and, likely, more expenses in the future.

1 minute read

November 6, 2015, 12:00 PM PST

By James Brasuell @CasualBrasuell


Norfolk Midtown Tunnel

DearEdward / Wikimedia Commons

"The private proposal to build a new underwater tunnel in [the] congested port city [of Norfolk] was originally billed as a way for Virginia to get a crucial piece of infrastructure without having to put in a single dollar of state money," according to an article by Michael Laris.

"Instead, Virginia officials have agreed to spend slightly more than $580 million on the project, more than twice the investment from the companies behind the deal."

The article cites the Midtown Tunnel project, as it's known, as the latest example of public-private partnerships that failed to deliver on their promise of delivering cheap and efficient transportation investment. For example, according to Laris: "An Indiana toll road went bankrupt last year after falling short of traffic projections; in Chicago, a 75-year deal privatizing parking meters has been denounced by critics as an unnecessary giveaway."

Laris goes on to describe just how the public cost burden spun so far from its original promise, which representative from one of the companies on the private side of the equation comes from the state's unwillingness to charge the money necessary in tolling.

Friday, November 6, 2015 in The Washington Post

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Close-up of white panel at top of school bus with "100% electric" black text.

Driving Equity and Clean Air: California Invests in Greener School Transportation

California has awarded $500 million to fund 1,000 zero-emission school buses and chargers for educational agencies as part of its effort to reduce pollution, improve student health, and accelerate the transition to clean transportation.

April 30 - California Air Resources Board

Aerial view of Freeway Park cap park over I-5 interstate freeway in Seattle, Washington at night.

Congress Moves to End Reconnecting Communities and Related Grants

The House Transportation and Infrastructure Committee moved to rescind funding for the Neighborhood Equity and Access program, which funds highway removals, freeway caps, transit projects, pedestrian infrastructure, and more.

April 30 - Streetsblog USA

"No Thru Traffic - Open Streets Restaurants" sign in New York City during Covid-19 pandemic.

From Throughway to Public Space: Taking Back the American Street

How the Covid-19 pandemic taught us new ways to reclaim city streets from cars.

April 30 - Next City