Key elements of the infrastructure PPPs revolve around:
• Who is responsible?
• Does the law allow it?
• How will we pay for it?
Understanding the roles to be played on both sides of the partnership makes the difference between success and failure. A keen understanding of the legal landscape and financial mechanisms that make partnerships agreeable is also critical.
On the private side, the most common teaming arrangement is developer/contractor-led with architect, engineer and operators/service/equipment providers as secondary team members. Leadership has a price-those who lead need to have a solid understanding of the time and financial commitments involved, which can range from months to years and include potential up-front risks of millions of dollars.
Each state makes its own laws. Some states such as California, Virginia, and Texas have robust PPP legislation allowing for private delivery and maintenance of infrastructure across different public sectors. Other states are just starting to enable PPPs and using pilot projects to test the waters.
Financing runs the gamut as well, from private to public, and from well-established lending, bonding and revenue-sharing programs to new models melding public and private investment at different phases.