Type of Organization

a. State Department of Transportation

Top benefits of PPP

1. Ability to provide resources, and leverage of resources, unavailable to public entity.

2. Knowledge of things that public personnel don't have.

3. Transfer of certain risks to private entity.

4. Relinquishment of public service/democratic responsibilities-private entities are not subject to the same freedom of information, accountability, and oversight requirements as the public entity is. So less hassles and you can hide things. Good for plausible deniability.

PPP Concern 1

Lack of private entity transparency and accountability in regard to records and information.

PPP Concern Mitigation 1

Build transparency into the contract. Delineate what is proprietary and what is not in the contract. Require records and information as a deliverable.

PPP Concern 2

Private entity won't tell you what risks public is assuming, even if they know. Public entity often doesn't know what risks they are transferring to private entity-sometimes they do but are only serving upper class interests. As a result, underclass sections of society are often impacted unfairly or their needs are discounted.

PPP Concern Mitigation 2

How can distribution of transportation benefits/burdens and risks be decided in a strategically equitable manner? Government deal making in transportation infrastructure development may only include stakeholders and interests of upper class membership. However, it is the role of government to assure that these deals benefit society as a whole, including the underclasses. If the spectrum of public interests is not represented, inequitable distributions of benefits, burdens, and risks may occur. There must be an approach to uncovering hidden and indeterminate public risk. In PPP, the paradigm for business interests where the business interest short term gain means the long-term public loss, must be changed. The public interest must be of paramount benefit.

PPP Concern 3

There is often limited state oversight during design and construction management.

PPP Concern Mitigation 3

The state should do oversight and quality measurements at all stages of the project.

PPP Concern 4

Selling off our transportation system requires everyone to play by the rules of business rather than the U.S. Constitution and/or the rule of law. Constitutional rights may not apply to the privately owned road. This is a serious concern.

PPP Concern Mitigation 4

The public should not relinquish control of public assets and services. PPPs are helpers, not a way to sell off the democracy or the "commons."

PPP Concern 5

PPP Concern Mitigation 5
Factors to consider by decision makers

1. The rules of the business game when negotiating a PPP contract- transfer of risk, short term gain, costing, etc.

2. The consequences of long-term social dangers when ignoring
underclass needs and impacts to the environment.

3. How will decision makers assure functional accountability of the private partner.

4. How will the PPP contribute to equitable distribution of economic benefits.

5. Long-term developmental impacts both in terms of the value of money and assets and in risks.

In the contract, deliverables should include freedom of information requirements, breach of contract definitions, liquidated damage provisions, and special oversight provisions that require audits and quality control actions by public entity on the documents, products, and actions of the private entity.

PPPs for transportation seem to be moving toward the privatization of all transportation services and assets. This has happened with many public lands, with communications, and with the air ways. We can see the results-it is not in the public interest and dismantles the democracy while profiting only a few.