States see plenty of potential benefits to P3s. The U.S. Department of Transportation in a 2008 report cited several, including:
• P3s can result in significant cost savings-Anywhere from 6 to 40 percent of the cost of construction can be saved and the potential for cost overruns can be significantly limited through fixed-price contracting.
• P3s can shorten project delivery by several years-They can accelerate the construction of projects that might otherwise be delayed, be built a piece at a time over a long period of time or not be built at all by providing access to immediately available private capital.
• P3s allow for the allocation of risk to the party best able to manage risk-Transferring a significant portion of the project risk to the private sector helps reduce taxpayer costs. This risk allocation can result in lower overall project risks, reduced project costs and accelerated project delivery. The public sector's ability to manage a large number of projects simultaneously is also enhanced by proper risk allocation.
• P3s can encourage innovations and the incorporation of life-cycle costs-They can encourage the incorporation of life-cycle costs in the design and construction of a facility, which often leads to delivery of a higher quality project.12
On that last point, the Government Accountability Office notes in a separate 2008 report that P3 projects can use tolling and congestion pricing (charging motorists more at times of peak travel) to ensure the true costs of operating and maintaining the facility are taken into account and the costs and impact to drivers of using the roadway system during peak demand periods are factored in as well. The previously mentioned new HOT lanes on the Capital Beltway in Northern Virginia will incorporate congestion pricing. Among the other benefits of P3s suggested by the GAO report is this one: Efficiencies in operations can also be achieved through private sector participation.13