Comprehensive highway public-private partnership (PPP) programs are relatively new to the United States and not widely used. Limited highway funds, unmet needs for new highway capacity interest from private investors, and other factors have led to substantial discussion of PPP projects and programs at the State and Federal levels and implementation of projects in a few leading States. In contrast, some countries have extensive and, in some cases, long-term experience with infrastructure PPPs, particularly highways. In fact, some public agencies have completed long-term concession agreements and the facilities have been returned to the public agency after many years of private operation.
Many international public agencies also have multiple PPP arrangements that have been in place for more than a decade. Furthermore, they continue to invite the private sector to compete for the opportunity to develop, finance, operate, and maintain public facilities for terms ranging from 30 to 50 years. Agencies need a fuller understanding of the factors that led to successful implementation of PPPs in other parts of the world before exploring the success factors in any individual agreement. This includes an exploration of preceding conditions and public expectations, philosophical perspectives on the role of the private sector, the original rationale for implementing PPPs, and issues that need to be con- fronted, including public acceptance.
With this understanding, the lessons learned in the pro- curement and contracting process can be put in the proper context and the issues can be better framed for application in the United States. A successful PPP will include appro- priate performance measures for the maintenance and condition of physical infrastructure and the transportation of people and products through the facility, as well as management of user charges and rates, where applicable.
Equally important are effective mechanisms to update an agreement to accommodate the future demands on a facility, as well as any conditions deemed significantly different from those at the time of an agreement. Finally, what are the metrics for measuring success? Current U.S. practice and experience do not provide a wealth of knowledge in any of these areas.