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P3 Defined

P3 Defined Graphic

Design Build Design Build Finance O & M Concession Design Build Operate Maintain Design Build Finance Operate Maintain Concession Long Term Lease Concession Private Contract Fee Services New Build Facilities P3 Options Existing Facilities Public Responsibility and Private Responsibility

Public-private partnerships (P3s) are contractual agreements formed between a public agency and a private sector entity that allow for greater private sector participation in the delivery and financing of transportation projects.

This section of the FHWA P3 website identifies and defines some of the more common types of P3 arrangements. There are many different P3 structures, and the degree to which the private sector assumes responsibility - including financial risk - differs from one application to another. Additionally, different types of P3s lend themselves to the development of new facilities and others to the operation or expansion of existing assets.

These relationships are depicted in the diagram above. Select any P3 option from the diagram to learn about distribution of roles and responsibilities between the public and private sectors for that specific P3 option.