P3s for new build facilities can involve construction of a new surface transportation asset or modernization, upgrade, or expansion of an existing facility. These P3s are structured as design-build-finance-operate-maintain (DBFOM) concessions that bundle together and transfer to a private sector partner responsibilities for design, construction, finance, and long term operations and maintenance over the concession period.
P3 concessions may be used to lease existing publicly-financed tolled facilities to private sector investor operators for a specified period of time during which they have the right to collect tolls on the facility. In exchange, the private partner must operate and maintain the facility and in some cases make improvements to it. The private partner must also pay an upfront concession fee for the right to operate the road and retain toll revenues.
This section provides access to P3 project agreements and sample contract documents. A P3 agreement is the legal document that establishes the rights and obligations of transportation infrastructure owners and the private-sector partners with whom they team to develop P3 projects. P3 agreements describe the service to be provided, standards to be maintained, and the business and financial relationships between public agencies and their private sector partners. View a list of key elements and legal issues commonly addressed in P3 agreements. View the Model Public Public-Private Partnerships Core Toll Concessions Contract Guide for information on how P3 Contracts are structured and for information on major provisions in typical legal contracts for highway transportation P3 projects in the United States.