PPP projects raise a variety of concerns as they move from concept through project delivery. These concerns range from the initial decision to use a PPP procurement/delivery mechanism through specifics of who has control over toll setting (where there are tolls involved), how risks and revenue are shared, and how the complexities of agreements can be communicated to the public and decision makers. This synthesis has been organized into the following topical areas:
• Project selection and delivery:
- Criteria for deciding whether to use a PPP approach;
- Unsolicited proposals and the transportation planning process;
- Roles of public and private sectors, risk allocation, and rates of return;
- PPP valuation tools; and
- Bonding, bonding capacity, letters of credit, and initial construction warranties.
• Transparency:
- Transparency and public participation;
- Adequacy of legislative branch review; and
- Perceptions of foreign control of domestic assets and the role of local contractors.
• Terms of PPP agreements:
- Asset control and ownership;
- Tolling policy;
- Non-compete and other unanticipated event provisions;
- Use of proceeds and revenue sharing;
- Maintenance standards and hand-back provisions;
- Environmental safeguards;
- Labor relation issues;
- Length of agreement;
- Termination and buyouts;
- Safety and enforcement;
- Commercial development rights;
- Data privacy and ownership;
- International trade agreement implications; and
- Liability, indemnification, and insurance.