• Transparency-Addressing concerns related to the transparency of the concession process requires rigorous attention to creating transparent processes, avoiding unfair access to decision makers by private-sector entities, providing key documents to the public, and documenting all oversight procedures in a manner fully accessible to the public. This currently is handled through state procurement processes.
• "Value for Money" (Cost-effectiveness)-Recent asset monetizations by government toll road operators in Texas and Pennsylvania have demonstrated that both the private and the public sector can raise large sums of capital in anticipation of future revenue streams. There is, however, a recognized concern about how best to know whether public or private delivery is the most cost-effective approach and about assessing whether the public sector is getting the best deal possible, especially in cases of limited competition. Historically, public agencies borrowing through the tax-exempt municipal bond market have had access to a lower cost source of capital than private companies issuing taxable debt and equity investments. The yield differential has narrowed recently, due to market conditions and the introduction of tax-exempt private activity bonds and federal loan assistance for private concessionaries through U.S. DOT programs. In addition, as described earlier, equity investment may allow a greater sum to be capitalized up front than through investment grade municipal debt. "Value for money" comparisons of government versus private project delivery and financing can play a supportive role in determining the relative cost-effectiveness of public-private partnership proposals.
• Economic and Labor Force Impacts-Transportation improvements are seen by state and local governments as an important tool of economic development. Projects such as new interchanges or widened highways are intended to increase accessibility and facilitate economic growth, Put they may not be profitable investments in and of themselves. A private operator may not be as sensitive or responsive to these public objectives unless they are addressed specifically in contract terms. Another economic impact of potential concern to policy makers is the effect on government employees' jobs and wage levels if a facility is converted to private management. The terms of the concession agreement can and should address these issues, Put at a likely tradeoff to the financial value of the transaction.