Dive Brief:

• The Port Authority of New York and New Jersey has announced a revised cost estimate of $4.2 billion for the replacement of a terminal at La Guardia airport in Queens, NY — up from the 2014 estimate of $3.6 billion, according to The Wall Street Journal.
• Port Authority officials said the scope of work has changed and that the original estimate did not include a central hall to tie the new terminal to the existing airport. However, The Journal said financing costs could push the price tag closer to $5 billion.
• In addition to the new terminal, which is expected to open by the end of 2021, the project will also add additional space for security screening and retail, as well as a potential hotel. The Port Authority is set to consider terms of a final lease this week.

Dive Insight:

The terminal project will be constructed and financed largely by a private consortium known as La Guardia Gateway Partners. According to La Guardia Gateway Partners website, the La Guardia project will be "one of the most ambitious P3s (public-private partnerships) ever undertaken in the New York/New Jersey region." The consortium said the P3 will provide the design, construction, financing, maintenance and operation of the new terminal.

Joseph Sitt, chairman of the Global Gateway Alliance, an airport-advocacy group, told The Journal that the new terminal is "long overdue" and would benefit travelers. "Even if there is some additional cost, it’s so well worth it. The payback is mind-boggling," Sitt said. "We deserve a top-notch, quality airport."

La Guardia likely won't be the only high-profile New York project that will soon use a P3 for construction. Last month, New York Gov. Andrew Como announced a $100 billion infrastructure program, and Cuomo’s secretary Bill Mulrow told the New York Building Congress that the state would utilize P3s as part of that plan as well.

And recently, Illinois officials announced a plan to build the first P3 managed lane project in the state, and they expect to save $435 million in construction costs. Officials said that leveraging private investment will allow them to build "the type of infrastructure that allows Illinois to better compete in the 21st century."