Why P3s?
P3 methodology in the delivery of public infrastructure is gaining ground in the United States as many local and state governments face the double threat of budget crises combined with under-capacity, aging infrastructure. This double threat has highlighted the need for policies and funding solutions that will reform infrastructure practices and enhance the sustainability of local communities. When implemented well, P3s allow governments to construct needed infrastructure while realizing the following benefits:
- Reduced construction and lifecycle cost;
- On time and on budget delivery;
- Reduced initial cash requirement, as front-end cost is spread over lifecycle of asset;
- Savings from innovations and efficiencies in design, as conceptual designs are paid for by the private sector;
- Sharing of development risks among the concessionaire, design, and construction teams;
- Reduced operating and life cycle costs for the public sector, due to private sector investment in ongoing maintenance and capital improvements; and
- Accelerated schedules enabled by concurrent design and environmental review.