EFFICIENCIES AND INNOVATIVE FINANCING PROGRAMS CAN OVERCOME PPPs' DISADVANTAGES, BUT NEITHER PPP NOR TRADITONAL FINANCING IS ALWAYS PREFERABLE

Efficiencies in the construction of greenfield projects can overcome PPPs' cost disadvantages, as can efficiencies in revenue generation. Innovative financing programs-in particular, the options available under TIFIA and PABs-can also offset PPPs' cost disadvantages by providing them with less costly and more flexible sources of capital. However, generalizations about which approach-a PPP or traditional financing-is more advantageous to the public sector cannot be made as each project has its own unique characteristics. We developed a flowchart of our analysis that could guide a decision maker in his or her financing choice.

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