Private Capital, Public Good: Drivers of Successful Infrastructure Public-Private Partnerships
This report posits that public-private partnerships are neither a “panacea to all America’s infrastructure challenges” nor “a corporate takeover of critical public assets.” It aims to fill the gap in the public’s understanding of P3s to match the recent surge in interest in this public infrastructure procurement and management tool. It provides an overview of basic P3 structure, how to consider proper risk and reward sharing, and the purpose and the rationale behind these arrangements. Nine recommendations are presented for decision makers considering P3s.
The Value for Money Analysis: A Guide for More Effective PSC and PPP Evaluation
American University of Public Affairs
This document was prepared at the request of the National Council on Public-Private Partnerships (P3) to provide a guide for conducting an effective Value for Money (VfM) analysis. The authors were graduate students at American University's School of Public Affairs, and the guide was prepared as part of their graduate program in Public Policy. This paper seeks to clarify VfM as a concept, explain how that concept is employed in assessing P3 projects through industry-specific as well as auditing agency formats, outline general evaluative criteria for VfM analyses, and provide general guidelines for public managers who will employ VfM analyses for future projects.
Partnership Financing: Improving Transportation Infrastructure Through Public Private Partnerships
Eno Center for Transportation
This report aims to improve understanding of the barriers to P3s in the U.S. and of P3s as a project delivery method. The Eno Center's P3 Working Group brought together industry leaders and experts to identify barriers to the increased use of P3s and to outline approaches for overcoming these barriers and create win-win opportunities. The Working Group began by studying both successful and unsuccessful P3 initiatives across the country in an effort to identify lessons learned for policymakers, legislators, and officials interested in using P3s to deliver transportation infrastructure projects. The Working Group was able to identify patterns in the challenges that states and localities have faced in employing P3s and develop recommendations for federal and local policy to enable greater use of P3s as an effective infrastructure delivery mechanism in the future.
the Public Interest: The Role of Long-Term concession
Agreements for Providing Transportation Infrastructure
USC Keston Institute for Public Finance and Infrastructure Policy
Written by Jeffrey Buxbaum and Iris Ortiz of Cambridge Systematics, Inc. this paper explores the confusion and controversy surrounding long-term concession agreements has come about because they have been promoted as silver bullets, as essentially free money provided by the private sector that will not require new taxes or fees. But users of the facilities will have to pay, and how users pay will be very different from how they have paid in the past. These new models may in fact prove to be more equitable and efficient than the old methods, but the negative reaction in some quarters to the initial agreements highlights the need for careful analysis and transparency going forward. The report explores the recent long term lease transactions of the Chicago Skyway, Indiana Toll Road and other potential transactions in those two states as well as Texas, Virginia and other domestic locations. The report identifies a number of potential strategies to address public concerns regarding public sector decision making including, conflicts of interest between the public and private sectors, and how contract terms can affect price levels and pubic control.
by Dollars: What States Should Know When Considering Public-Private Partnerships
to Fund Transportation
Pew Center on the States
This report analyzes Pennsylvania's unsuccessful effort in 2008 to lease the Pennsylvania Turnpike to private investors. The report provides valuable lessons for other cash-strapped states seeking to fund their highways and bridges. It identifies the information states need and the issues they should deliberate when exploring P3s to fund infrastructure improvements.
According to the report, states considering public-private partnerships should have clear, data-driven answers to questions in the following four categories: (1) Examining the Options - the Decision-Making Process; (2) Let's Make a Deal - the Deal-Making Process; (3) Show Me the Money - Financial Analysis; and (4) Who Will Mind the Store? Oversight and Service Provision.
How States and Territories Fund Transportation: An Overview of Traditional and Nontraditional Strategies
National Governors Association Center for Best Practices
This report is designed to provide states with an overview of traditional funding mechanisms, profiles of new and innovative programs at work in the United States and overseas, and a summary of each state's surface transportation funding approaches. The report covers state-driven mechanisms only and is meant to help states identify strategies to consider in addressing their revenue needs alongside federal and local approaches. P3s are discussed among the nontraditional and innovative financing mechanisms, and the report highlights which states are authorizes and have used P3s or surface transportation projects.
Innovative State Transportation Funding and Financing: Policy Options for
National Governors Association Center for Best Practices
This paper presents the basic state policy options for funding transportation and outlines recent innovations by: (1) providing case studies of state and international experience with a full range of policy options; (2) addressing new options that have emerged; (3) summarizing new developments in P3s; and (4) detailing financing options, such as congestion pricing, which establish a price signal to users that can both raise revenue and encourage more efficient use of the transportation infrastructure. Each chapter provides a description of a different type of innovative financing or funding approach or ways to address demand; best practices from the United States and abroad; and additional considerations for states that are considering these options. Chapter 6 deals with the recent interest in P3s by discussing innovative procurement, design-build strategies, concession agreements, and other ideas.
Foundation Annual Privatization Report 2009
Reason Foundation's 23rd Annual Privatization Report details the latest trends and examples of how public officials are reducing costs and improving service delivery through public-private partnerships, outsourcing, and performance-based government. The surface transportation component of the report contains information on new P3 toll roads, the leasing of existing toll roads, HOT/managed lane projects underway, overseas concession projects, and a look at China's growing effect on private capital.
Ten Myths and Facts on Transportation Public-Private Partnerships
This report authored by the Reason Foundation in conjunction with the Buckeye Institute for Public Policy Solutions aims to clarify 10 prominent "myths" about P3s and describe the corresponding "facts." The report is designed to inform transportation infrastructure decision making following the 2011 legislative authorization permitting the Ohio DOT to enter into transportation P3s and the long-term lease of the Ohio Turnpike to private investors, separately authorized in that year's state budget. In 2012, the Ohio DOT announced the formation of an internal Division of Innovative Delivery that is helping to identify alternative funding solutions for transportation initiatives, capitalizing on this new authorization in the face of traditional funding shortfalls.