History

what are p3s?

P3s have a long history in many countries but grew popular in 1980’s. They have the longest tradition in the United States when in the 1950’s and 1960’s, P3s were used as a tool for stimulating private investment in the inner city infrastructure and regional economic development.

During the Carter administration, national urban policy and urban development action grants encouraged cities to go from private investment subsidies to equity joint venture P3s. The Reagan administration used P3s to reduce the size of government. The Clinton administration promoted P3s as a key component to its urban policy, and viewed P3s as a new way of governance and encouraged local government involvement.

Internationally, the earliest examples of P3s were seen in the 1960’s in Spain where toll roads were built. In 1979, the conservative government of United Kingdom concluded that government was too involved in the economy and needed to step down in favor of private capital. Prime Minister Thatcher’s administration turned to P3s as a method of economic regeneration.

Netherlands introduced the P3 idea in its government policy statement of 1986. Although Norway initially did not need private capital due to its oil revenues, it has been cooperating with the private sector now for infrastructure projects.

Australia’s P3s emerged in the early 1990’s developing toll roads, hospitals, water and power plants, schools, courts, sea ports and airports. The Canadian government has also been pursuing P3s for various projects.