In the United States, many policymakers, analysts and members of the general public have come to associate PPPs with long-term lease concessions of existing infrastructure ("brownfields").27 This is largely due to the high-profile leases of the Chicago Skyway in 2005 and the Indiana Toll Road in 2006. In a brownfield concession, an existing public asset is leased to a private entity, the "concessionaire," for a specified time. The concessionaire typically pays an up-front lump sum fee and/or a share of ongoing revenues to the public agency in exchange for the right to collect availability payments or direct revenue generated by the asset over the life of the contract (usually 25 years to 99 years). The private entity also agrees to operate, maintain and/or improve the facility during that time.28 Up-front fees for brownfield concessions can be sizable. Private concessionaires paid $1.83 billion for the 99-year lease on the Chicago Skyway and $3.85 billion for the 75-year lease on the Indiana Toll Road.

Much of the current public discourse about PPPs in the United States focuses on potential benefits and controversies related to brownfield concessions, especially those that involve tolls. Many policymakers have questions and concerns about such projects. However, opportunities for a long-term lease of an existing asset-especially one involving tolls-are relatively few in the United States. Most states simply will not have brownfield toll roads to lease29 and are more likely to enter into other types of PPPs. In fact, most PPP activity in the United States to date has involved greenfield, not brownfield, projects. For these reasons, this report addresses both brownfield concessions and other project types.

Chicago Skyway, Illinois (99-year lease). The Chicago Skyway is a 7.8-mile elevated toll road connecting Chicago to the Indiana Toll Road at the state line. It was leased in 2005 for $1.83 billion. (Photo: Peter S. Schultz)

Indiana Toll Road, Indiana (75-year lease). The 157-mile Indiana Toll Road-which stretches from Ohio to Illinois-was leased in 2006 for $3.85 billion. (Photo: Jon L. Hendricks/The Times file photo)