The P3 delivery model considers both the development and long-term operation of new infrastructure. Public agencies use the design-build-finance-operate-maintain (DBFOM) method to bundle and award lifecycle responsibilities to a private “partner” or consortium, following an extensive procurement and negotiation process.
Some public agencies have leased existing facilities to private operators for long-term periods. Such transactions typically require the private partner to improve, operate and maintain the facility in return for the right to collect user fees. In the case of a toll road, the private partner often makes an upfront payment to the public agency.