The successful use of P3 strategies requires the definition of clear policies and evaluation and decision-making procedures that advance these procurements in a way that serves the public interest.
P3 projects have been less prevalent in the U.S. than in many other countries in part due to historic public policies that have led to large Federal investments via grants-in-aid for highways discouraging the construction of toll roads. Federal regulations that prohibit tolling of the Federal-aid highway system and constraints on Federal tax exemption for financing and long-term leases have the potential to limit the use of P3s. Similarly, State policies on tolling and private financing of public infrastructure may also limit public agencies in use of P3s. Crafting and attaining approval of policies that allow equal consideration of tolling as a method to help pay for transportation projects can help facilitate fair consideration of P3 strategies.
When contemplating the possible use of P3 procurements policymakers should consider a number of strategic issues:
1) Whether to set up a P3 program or develop P3 projects on a project-by-project basis;
2) Establishing criteria and a process for the selection of projects for evaluation as a potential P3;
3) How to structure a commercially valuable P3 agreement that achieves policy goals, optimally allocates project risks, and brings value to the investment;
4) How to conduct a fair and competitive procurement to select the best partner and negotiate a final agreement that is transparent and protects the public interest while addressing the private partner's concerns.