Premium
Infrastructure Public‐Private Partnerships: “Partnerships” Come to Fruition
Author(s) -
Offutt J. Perry,
Runde James,
Selinger Stacie D.
Publication year - 2011
Publication title -
journal of applied corporate finance
Language(s) - English
Resource type - Journals
eISSN - 1745-6622
pISSN - 1078-1196
DOI - 10.1111/j.1745-6622.2011.00342.x
Subject(s) - business , toll , finance , private sector , private capital , revenue , capital (architecture) , public infrastructure , asset (computer security) , economics , economic growth , production (economics) , history , genetics , computer security , macroeconomics , archaeology , political science , computer science , law , biology
P3s are generally structured as long‐term leases of municipal assets like toll roads, ports, and airports by private investors/operators. Five years ago, municipalities viewed such partnerships primarily as a means of raising capital, and they often viewed maximizing the up‐front proceeds as the primary goal of the transactions. Today's P3s have been re‐defined to focus beyond the bottom line and toward the goal of developing sustainable long‐term partnerships between the public and private sectors. As three transactions from the past year are used to demonstrate, the P3 has emerged as a way for governments to achieve sustainable reinvestment in needed infrastructure while also using the best practices of the private sector to increase the efficiency of and revenue from their asset operations.