Premium
Infrastructure Public‐Private Partnerships Re‐Defined: An Increased Emphasis on “Partnerships”
Author(s) -
Runde James,
Offutt J. Perry,
Selinger Stacie D.,
Bolton Jennifer Sarah
Publication year - 2010
Publication title -
journal of applied corporate finance
Language(s) - English
Resource type - Journals
eISSN - 1745-6622
pISSN - 1078-1196
DOI - 10.1111/j.1745-6622.2010.00275.x
Subject(s) - toll , business , lease , general partnership , finance , private sector , limited partnership , public–private partnership , capital (architecture) , port (circuit theory) , private finance initiative , private capital , economics , economic growth , production (economics) , history , genetics , macroeconomics , archaeology , engineering , electrical engineering , biology
A public‐private partnership, also known as a “P3,” is usually structured as a long‐term lease of a municipal asset (such as a toll road, port, or airport) by a private investor (and/or operator). Five years ago, P3s were viewed by municipalities primarily as a means for raising capital, and maximizing the upfront proceeds was often viewed as the primary goal. Today's transactions are now being redefined with the goal of developing sustainable long‐term partnerships between the public and private sectors. Governments are increasingly intent on realizing efficiencies by partnering with the private sector to achieve improved services and accelerate needed capital improvements. As a result of this redefining, the P3 has become an essential tool in governments' financial arsenal to manage the many challenges facing municipalities, including budget deficits, large pension obligations, and extensive infrastructure funding needs.