Despite notable successes in such projects as the Alameda Corridor and the groundbreaking of SR 125S near San Diego . . . public-private partnerships (PPPs) are still viewed by many in transportation as unique and fraught with legal, financial, and administrative hurdles. Abundant experience in the use of PPPs in other areas, and the growing experience in transportation illustrate that these hurdles can be overcome.[136]-FHWA Administrator Mary Peters
All large-scale highway investments face financial, technical, and political barriers; however, several additional challenges must be overcome to implement a public-private partnership project in highway and transit development.[137] The Federal system for funding and constructing transportation projects is premised on the use of government funds and State or local development and ownership of the system. Since public-private partnerships are not the usual way of developing, funding, or even operating surface transportation projects, the use of these partnerships often encounters obstacles including legal, financial, political, and cultural hurdles despite the benefits that such partnerships may bring to a project.
This chapter will explore the major impediments to the formation of public-private partnerships, including State laws and policies, local opposition, private sector concerns, Federal funding concerns, and Federal financing concerns. Through the examination of these impediments, solutions to facilitate the formation of public-private partnerships can be ascertained.