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P3 Defined

Lease Develop Operate [ Hybrid ]

P3 Graphic Defined

Detailed description of the graphic

Public Owner (state or local government, through equity or debt) leases to Private Concessionaire (funding from commercial debt, private equity or possible public subsidy/guarantee) and Concessionaire's Constructor (engineer and contractor) and Operator.

In a Lease Develop Operate arrangement the project sponsor grants a private operator/developer a long-term lease to operate and expand an existing facility. The private party agrees to invest in facility improvements, and can recover the investment plus a reasonable return over the term of the lease.

Projects

Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000
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