One of the major justifications for entering into PPP project delivery arrangements in the highway sector is the potential benefit of allocating certain project risks to the party in the best position to manage those risks. For example, it is common in a PPP transaction for the public sector to retain the risks associated with environmental clearance, environmental permitting, and right-of-way acquisition. The public sector typically is in a better position to manage such risks than the private-sector partner because the public authority may have condemnation authority, an interest in developing long-term good relationships with environmental reviewing agencies, and generally may be viewed as more objective than a private-sector partner. On the other hand, it is common to allocate construction, financial, traffic and revenue, and various other risks to the private-sector partner because it is often in a better position to manage such risks and because the profit it earns is based on its willingness to accept such risks.