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General P3 Fact Sheets

Public-Private Partnerships

P3s are contractual agreements between a public agency and a private entity that involve the private sector taking on additional project risks, such as design, construction, finance, long-term operation, and traffic revenue.

Public-Private Partnerships Program

Building the organizational capacity needed to develop P3s while protecting the public interest presents a major challenge to transportation agencies and requires agencies to develop or acquire new policy, legal, technical, financial, and managerial skills.

Public-Private Partnership Types

Three main types of highway P3s have been used for highway projects in the United States: design-build, design-build finance, and design-build-finance-operate-maintain.

Public-Private Partnership Payment Mechanisms

Three common payment mechanisms are used to repay private sector partners are repaid for their investment in P3 projects: tolls, availability payments, and shadow toll payments.

Key Considerations in Implementing a Public-Private Partnership Program

To deliver P3 projects, public agencies will need to acquire or develop new knowledge, skills, and abilities that vary by the phase of the project, including: establishing a statutory and policy framework, identifying, evaluating, and developing potential P3 projects, conducting procurements, and monitoring and oversight.

Federal Aid Funding and Availability Payments

FHWA recently implemented a policy that will allow State Departments of Transportation to apply Federal-aid funds in towards availability payments to P3 partners.

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