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.