The delivery of transportation infrastructure can benefit from PPPs in many ways, by accelerating projects, transferring risk to the private sector, and bringing innovative and creative solutions to the public sector. Effective use of PPPs for transportation projects adheres to the following rules:
1. PPPs are only part of the solution and cannot overcome systematic underinvestment in infrastructure. Attempting to avoid difficult decisions by shifting responsibility to PPPs or to any other financing mechanism is "ostrich politics."
2. Not all projects are good candidates for a PPP. Carefully assess and screen potential projects and then determine that the PPP approach will add value. Develop PSCs and complete a VfM analysis to evaluate a PPP arrangement against the more traditional options.
3. Focus the PPP on delivering new or enhanced infrastructure, not on monetizing an asset to pay down a deficit in the operating budget of the general fund.
4. Establish clear, realistic goals, whether for a single project or an entire PPP program. If the PPP approach cannot meet the goals, postpone or halt the process. A PPP is a tool, not a goal in and of itself.
5. Make sure that the public-sector participants have the knowledge and expertise to develop the procurement effectively and to evaluate and negotiate the agreements.
6. Create procurement processes that maximize opportunities for the private sector to exercise innovation and creativity.
7. Conduct fair, open procurements that are transparent, that focus on achieving the best value for the public, and that ensure fairness for the private participants.