Public Private Partnerships—P3: Innovative Solutions for Age Old Problems
by Kevin Schneider | March 16, 2015
Public Private Partnerships, or P3 for short, have become increasingly popular mechanisms for sharing and allocating risks, rewards, assets, skills and responsibilities between public sector (federal, state or local agencies) and private sector entities. There are countless methods of structuring a P3 initiative, but they all have one thing in common: taking advantage of private sector efficiencies in ways unavailable through traditional public procurement methods. P3 type projects allow for more creativity and innovation than traditional procurement mechanisms.
One example of a P3 is where the public sector wants (or needs) a new piece of transportation infrastructure, say a bridge, but cannot afford to pay for it. The public entity could request proposals from private sector teams to design, build, operate, finance and maintain the bridge project for a certain period of time. The winning private sector team would then be repaid through tolls collected over a certain period of time or a bond initiative based on stabilized income from the toll revenue. This P3 mechanism may better serve to allocate risks to those best able to manage them (e.g. risk of cost overruns or revenue shortfalls allocated to the private sector), and economize on efficiencies (one team manages the entire project from concept through implementation vs. separate RFPs with separate contractors for each component) than the alternatives. At the end of the project, the bridge becomes a public sector asset in accordance with standard practices.
GreenVest specializes in navigating the maze of relationships and regulations required to develop and implement successful P3 projects. We have expanded this concept beyond that of traditional transportation infrastructure, and into “environmental infrastructure,” whether that be urban stormwater management best management practices (BMPs), septic to sewer conversions which result in significant reductions in harmful nutrients polluting local waterways, or wetland, stream and forest restoration required to offset impacts to the natural environment caused by transportation and both private and public sector development projects. We can provide full service solutions, from concept, through design, financing, implementation, maintenance and monitoring, on projects ultimately destined for public benefit. Please contact us for more information on how we can help you both envision and implement innovative and creative P3 solutions.
Email us at firstname.lastname@example.org with any questions, or give us a call to discuss your situation or project. We’ll work with you to develop a solution that works.Recent Posts