Roles of Public and Private Sectors, Risk Allocation, and Rates of Return

The roles and responsibilities of public and private sectors under traditional procurement are well understood by state DOTs, architectural/engineering firms, and contractors that are involved in the process. The introduction of a PPP changes the traditional roles of these entities in the development, operations, and management of transportation infrastructure. The public sector's goal is to provide a transportation infrastructure (and system) that is safe and improves user mobility, whereas the private sector's main goal is to achieve a return on investment. Because these goals may be in conflict, the public sector must ensure that the assignment of roles, responsibilities, and risk is done in a manner that protects the public goals.

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