USA - Guidebook and Case Studies for Transportation Public-Private Partnerships

The growing interest and experience in using public-private partnerships (PPPs) to expedite transportation infrastructure projects in the United States has followed the efforts by transportation agencies in other countries to address funding shortages to meet urgent transportation expansion and replacement needs by engaging the private sector to a greater extent than in the past.  This document provides guidelines for transportation agencies in the U.S. on institutional issues and strategies for developing, implementing, and managing PPP contractual

arrangements to expedite transportation projects. 

EXPERIENCE IN DEVELOPING AND IMPLEMENTING PPPs

Experience in various countries which have used PPPs to deliver transportation infrastructure projects for many years shows that the structure and delivery methods selected are highly dependent on a number of factors, including:

· Enabling statutes and regulations and underlying taxation policies;

· Capabilities of all members of the PPP to effectively execute their roles and responsibilities in a transparent and accountable manner;

· Contract flexibility and a proactive approach to identifying and resolving issues that arise during project development and implementation phases;

· Contract terms for developing and sharing revenues produced by the PPP project; and

· Ability of financial markets to deliver financing structured to suit each PPP project.

These issues vary from country to country and should be addressed on a project-by-project basis. Particularly important are potential political risks where the local or national economy and/or political environment are less stable. As more states have begun to undertake PPPs, lessons are being learned about the opportunities

and challenges of PPP approaches and how impediments to implementing PPPs once thought to be insurmountable can be addressed.  Moreover, the U.S. is entering a new phase in surface transportation investment, and PPPs are likely to be increasingly relied upon by state and local governments to finance transportation infrastructure improvements.  Understanding the PPP landscape and the lessons learned from prior or current PPP projects are valuable for transportation agencies considering or beginning to use PPP approaches to project delivery.

US. 2007. Case Studies of Transportation Public-Private Partnerships Around the World. Washington, DC: United States Government, Department of Transportation, Federal Highway Administration. [#2243]