Effectiveness of Contemporary Public-Private Partnerships for Large Scale Infrastructure in the United States

Increasingly, states are relying on creative financing and asset management to maintainand improve the nationâs transportation infrastructure since budgetary challenges constrain potential options. One method of tapping into alternative sources of capital is the public-private partnership (PPP or P3). A public-private partnership is a long-term contractual agreement in which the public sector authority assigns a traditionally public responsibility (such as operations and/or financing) to the private sector participant, in hopes of achieving mutual benefit. Firstemployed in the contemporary era in the late 1980âs by California and Virginia, the public-private partnership has continued to become a more popular delivery method. A thorough review of the literature on the subject reveals both academic and institutional material covering awide variety of P3 topics.Garvinâs (2007) P3 Equilibrium Framework supplemented the current body of knowledgeby building upon past research to better analyze the performance of existing and proposed PPPâsor serve as a resource when developing future projects. The Framework allows the user to assessa project or program and determine its potential for producing desirable results. This researchutilizes case studies to gain further insight into P3 projects and programs, as well as theperformance of the original P3 Equilibrium Framework. The cases include the evolution oflegislation in California and Virginia, and four projects that resulted from these programs: theState Route 91 Express Lanes, Dulles Greenway, Pocahontas Parkway, and failed I-81 Improvement proposals.Application of the original framework to the case studies led to several refinements. The changes provide more comprehensive appraisal mechanisms and improve the applicability and consistency of the P3 Equilibrium Framework. In addition, the concept of âtensionâ is introduced, which in effect is a means of describing the stress between the interested parties of a P3 arrangement. Ultimately, the revised Framework helps to structure perspectives of P3arrangements and is underpinned by the notion that these strategies must balance the interests of society, the state, industry, and the market for ultimate success.