P3 TOOLKIT QUICK FACTS
FOR FURTHER INFORMATION:
See FHWA's P3 Toolkit.
The use of Public-Private Partnerships (P3s) marks a shift away from traditional ways of procuring and financing highway projects. Under the P3 model, a private partner may participate in some combination of design, construction, financing, operations and maintenance, including collection of toll revenues.
The Federal Highway Administration's (FHWA) Office of Innovative Program Delivery (OIPD) is producing a P3 Toolkit comprising tools and guidance documents to assist in educating public sector policy-makers, legislative and executive staff, and transportation professionals. The P3 Toolkit forms the base of a broader P3 capacity-building program which includes a curriculum of P3 courses and webinars. The P3 Toolkit will address Federal requirements related to P3s and four key phases in P3 implementation:
The P3 Evaluation Tools are a key component of the P3 Toolkit. They serve as a reference for decision-makers and practitioners seeking to understand P3s as a financing alternative for major capital projects. The P3 Evaluation Tools include:
Practitioners can use P3-VALUE to better understand the concepts, inputs, key assumptions and outputs from evaluations of risk, financial feasibility and "value for money" analyses used to compare the aggregate financial benefits and costs of a P3 alternative with traditional procurement. P3-VALUE is comprised of four Excel-based spreadsheet tools designed to educate the user, not as finished tools for use in detailed evaluation of actual projects. The complexity of the analyses for specific projects requires that they be done by experts using more detailed modeling. The four tools are outlined below, and their inter-relationship is presented graphically in Figure 1.
Figure 1 Relationship of Individual Tools within P3-VALUE
IPD provides a one-stop source for expertise, guidance, research, decision tools, and publications on program delivery innovations. Our Web page, workshops, and other resources help build the capacity of transportation professionals to deliver innovation.
IPD’s project delivery team covers cost estimate reviews, financial planning, and project management and assists FHWA Divisions with statutory requirements for major projects (e.g., cost estimate reviews, financial plans, and project management plans).
IPD’s project finance program focuses on alternative financing, including State Infrastructure Banks (SIBs), Grant Anticipation Revenue Vehicles (GARVEEs), and Build America Bonds (BABs).
IPD’s P3 program covers alternative procurement and payment models (e.g., toll and availability payments), which can reduce cost, improve project quality, and provide additional financing options.
IPD’s revenue program focuses on how governments can use innovation to generate revenue from transportation projects (e.g., value capture, developer mitigation fees, air rights, and road pricing).
The Transportation Infrastructure Finance and Innovation Act (TIFIA) program provides credit assistance for significant projects. Many surface transportation projects—highway, transit, railroad, intermodal freight, and port access - are eligible to apply for assistance.