iv.  Public-Sector Leadership

Public-sector leadership is an important factor for public-private partnership projects, both for championing the approval of the project and overseeing the project through completion. Political problems are inherent in high-cost projects and especially in high-cost, public-private partnerships.[176] The problem is further aggravated by the fact that political champions may enter and leave office throughout the course of the project.[177] This discontinuity creates uncertainty for private partners, and can discourage private entities from pursuing public-private partnerships.[178] However, continuous, effective communication may help reduce uncertainty.[179]

Because highways are public goods, highway construction will have government oversight. Public oversight may take the form of regulations on toll rates, or rates of return, specification of construction standards, enforcement of safety, and the supervision of operation and maintenance. The direction and intensity of public oversight may change with the change of administrations. Risks of adverse changes at the political level can make it impossible to finance some highway projects.[180] A private entity will be more willing to enter into a partnership agreement in a State where there is a solid political support as opposed to a State where the political support for a public-private partnership may be fleeting.