Bringing Projects to Life
Public-Private Partnerships
ANNA MOORE
When a public sector joins a private sector in partnership to fund a service or project that is typically offered by the public sector , you have a public-private partnership ( PPP ). Oftentimes , PPPs can be wise solutions for getting the capital needed to fund a particular concept-turned-project or to upgrade an existing entity in need of maintenance . The World Bank says PPPs can help foster new solutions and bring finances to governments facing aging or a lack of efficient infrastructure . By working together , public and private sectors make the dream become a reality , without the financial burden .
There are many PPPs in the state of West Virginia that have proven successful , including various business ventures , infrastructure improvements and recreational destinations .
West Virginia Executive reached out to some projects across the state that are either already funded or have funding in progress through PPPs . These PPPs range from small to large scale and prove just how effective these types of partnerships can be in the broader economy in West Virginia .
AHF Products
By Robbie Morris , Randolph County Development Authority Executive Director
The AHF Products plant in Beverly , WV , is the largest pre-finished hardwood flooring plant in North America with approximately 835,000 square feet under one roof . AHF employs over 500 people directly , with hundreds of additional jobs being tied to the plant indirectly through logging , sawmills , trucking and more . All these reasons made it a simple decision for the Randolph County Development Authority ( RCDA ) to partner with AHF when it needed to expand its current plant by 85,000 square feet to create a distribution center and additional warehouse space .
As property owner of the AHF plant , the RCDA applied for a U . S . Economic Development Administration ( EDA ) grant to help expand the facility . The U . S . EDA awarded a $ 2.5 million grant to the RCDA to help with construction costs . The RCDA was able to leverage the remaining private capital necessary for the $ 9.2 million total project from AHF . The expansion allowed the Beverly plant to update the way it fulfills orders to customers . The flexibility created by the distribution center reduced costs for the company , while allowing AHF to meet customer expectations . The extra space also allowed for a larger warehouse to keep more products in stock while freeing up area for more manufacturing capabilities .
Without the grant from the U . S . EDA , this expansion project would not have been financially feasible . The partnership between AHF and the RCDA is what made the grant possible . A solid team effort between public and private entities resulted in creating jobs , growing the economy and contributing to the success of the overall community . This is a prime example of how PPPs are supposed to work .
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WEST VIRGINIA EXECUTIVE