Type of Organization

Other; Public Policy Think Tank

Top benefits of PPP

1.  new capital brought into infrastructure,

2.  economic life-cycle management,

3.  customer driven focus,

4.  access to private equity markets, and

5.  long-term incentives to maintain facilities

PPP Concern 1

Consistent, sustained investment in facilities

PPP Concern Mitigation 1

Solved by including performance outcomes in contracts, including pavement standards, LOS goals/targets

PPP Concern 2

Financial viability of projects as stand alone facilities

PPP Concern Mitigation 2

Solved by supplementing user fees (e.g., tolls) with public funds, altering the length of the lease agreement, or allowing alternative revenues to be raised by private company to supplement user fees

PPP Concern 3

Interoperability of technology among facilities

PPP Concern Mitigation 3

Solved by ensuring technology is open-ended and RFP specifies the ability to operate with competing technologies

PPP Concern 4

PPP Concern Mitigation 4

PPP Concern 5

PPP Concern Mitigation 5

Factors to consider by decision-makers

1.  Ability to improve facility or service performance;

2.  Performance measures are included in the PPP agreement,
allowing either party to "walk away" of one does not fulfill its
part of the contract;

3.  Ensure the length of the PPP agreement is appropriate for the
service or facility;

4.  Ensure the private entity shoulders most of the risk for failure to perform

Contract structures/techniques to protect public interests

Other perspectives