Public-Private Partnerships (P3s): What Are Public-Private Partnerships (P3s)?

Federal Highway Administration2017PDFBriefUnited States. Federal Highway Administration. Office of Innovative Program DeliveryDeCorla-Souza, Patrick T.United States. Federal Highway Administration. Office of Innovative Program DeliveryUnited StatesPublic private partnershipsInfrastructureGovernment agenciesUnder traditional procurement, private contractors construct projects based on a public design with public financing and turn them over to the public sector upon completion for operations and maintenance. Under P3 models, the private sector may also participate in design, finance, operations, maintenance, and tollrevenue collection. \u201cAvailability payments\u201d are a type of long-term lease in which the private sector designs, builds, finances, and operates a facility over a specified term in exchange for an annual payment. Under a toll concession, the private concessionaire receives the right to collect toll revenues from the facility instead of collecting a specified payment.109