The number and variety of PPP approaches is constantly evolving to meet the needs of project sponsors and the circumstances associated with specific projects, such as size, complexity, funding sources, and financing needs. Some of the recent attributes of change in PPP arrangements include the following:
• Level of participation by the sponsoring agency or government in the value capture
associated with the project funding source (such as proceeds from tolls or other forms of direct user fees);
• Length of the contract;
• Substitution of availability payments or shadow tolls in lieu of direct user charges;
• Extent of private sector surety requirements; and
• Mixture of greenfield and takeover projects.
More variations are expected, particularly as political issues are being raised concerning the takeover of existing toll roads for short-term budget relief and the extent of foreign involvement in PPP contracts as concessionaires or financiers.
A number of related public-private funding arrangements are being used to augment project revenues by tapping the value capture associated with economic development in the vicinity of the proposed or current transportation facility. These innovative funding and financing approaches typically involve private entities which directly benefit from enhanced transportation accessibility. Several of these PPP funding/financing approaches are described below.