Public Private Partnerships (PPP)

In just a decade, the “big four” Canadian provinces of Alberta, British Columbia, Ontario and Quebec have embraced P3 projects to the point where they are almost a mainstream construction-delivery method. While concessionaires continue to keep an eye on the uneven progress of the U.S. P3 market, they have gone north to land solid P3 projects.

California voters endorsed a highly anticipated ballot proposition to approve raising $9.9-billion (U.S.) in state bonds for the first leg of a high-speed rail line extending from San Diego to San Francisco and Sacramento.  But as is the case with high-speed rail systems in much of Europe and Japan, the proponents of the California project have been up front about the need to involve the private sector in this massive undertaking. The California High Speed Rail Authority has retained a finance firm, to assess the opportunities to involve private players.

The number of public-private partnerships in the U.S. transportation sector has soared to record levels in recent years and continues to climb, according to a new study announced in late July by U.S. Transportation Secretary Mary E. Peters.

The new report, Innovation Wave: An Update on the Burgeoning Private Sector Role in U.S. Highway and Transit Infrastructure,  found that more transportation public-private partnerships were completed over the last three years than in any other compatible time period in history. According to the report, more than 20 major highway and transit projects are currently being conducted in partnership with the private sector at various stages of development in the United States.  Another finding shows that states and localities can reduce project costs, accelerate project delivery and transfer risks to the private sector while also protecting public-sector interests through well-balanced concession agreements, Peters said.