What is a Public-Private Partnership? (And why we should think broadly about it)
P3 Focus
P3 Focus Blog
November 24, 2020
Completely separate from the question of which types of contractual arrangements qualify as P3s is what types of projects qualify as P3s. The industry in the United States has long been focused on highway projects, and due to the success of the model, the P3 model is widely accepted as a potential model that should (or must) be at least considered for the delivery of a new highway or bridge project. The P3 model is also gaining traction for mass transit projects (such as the Los Angeles Airport Automated People Mover system), water and sewer infrastructure, certain social infrastructure projects (i.e., government buildings)—but that acceptance remains a work in progress, and governments do not yet instinctively think of P3s as a possibility for projects of every type. But they should. The P3 model’s emphasis on lifecycle costs, financing flexibility, and competitive procurement has much to offer any project type.
Earlier this month, the Pennsylvania legislature passed a bill that will significantly expand the list of eligible project types under the Commonwealth’s transportation P3 program. The bill expands the program and includes not only every type of transportation infrastructure that one could imagine (now including rest areas, weigh stations, welcome centers, and unmanned aerial systems) but also potential projects that don’t include any infrastructure, such as the provision of driver and vehicle services and projects that support the development of driverless vehicles. We hope that other states and local governments will follow suit and similarly think of P3s in expansive terms. As we have seen with road P3s, success begets success. By emphasizing the breadth and flexibility of the model, it is more likely to be adapted to new types of projects, which can then be replicated throughout the country.
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