KEY QUESTIONS TO GUIDE CONSIDERATION OF PPPs

Given the impetus for considering PPPs, there are five related questions that should be addressed by project sponsors and prospective private partners before proceeding beyond merely considering PPPs as a delivery option:

1.  What legal, political, and institutional framework would enable a state or local government to undertake a PPP program for surface transportation projects?

2.  Can or should an individual project be undertaken as a PPP?

3.  What kind of PPP approach best suits a project or set of projects?

4.  Does the PPP approach offer greater potential public benefits than traditional project delivery approaches?

5.  Does the PPP approach provide a reasonable balance between public and private responsibilities, risks, and rewards?

6.  Is the PPP approach in the public's overall best interest while meeting private feasibility requirements?

The remaining sections of this document provide insights to help project sponsors and their prospective private partners answer these questions before deciding whether to commit to a particular PPP approach or contract agreement.