Ranking Challenges in Public-Private Contracts for Infrastructure Projects

Document Type : Research Article (Original Article)

Authors

1 Assistant Professor, Faculty of Economics and Social Sciences, Bu-Ali Sina University, Hamedan, Iran.

2 PhD candidate of Marketing Management, Faculty of Humanities, Islamic Azad University of Hamadan, Hamedan, Iran.

Abstract

State and local governments provide more than two thirds of highway funding and are responsible for developing and delivering most of our transportation infrastructure. But many of these agencies do not have enough funds to maintain the existing transportation system, let alone expand it. In response, many agencies are looking for public private partnerships (P3s) to allow them to get more done with less. FHWA prepared these series of papers to enable transportation agencies to make informed decisions with respect to P3s by exploring the myths and realities of this complex - but often effective - project finance and delivery approach.
P3s are contractual agreements between a public agency and a private entity that allow greater private sector participation in delivering and financing of transportation projects than other 15 approaches, which are traditionally used. With P3s, private firms take on the risks of some or all of the financing, constructing, operating, and/or maintaining a transportation facility in exchange for a future revenue stream. This is a departure from the traditional model where private contractors construct projects based on a public design using public funding, after which public agencies take responsibility for long-term operations, maintenance, and rehabilitation.

Keywords

Journal of Improvement Management
Volume 11, Issue 3 - Serial Number 37
November 2017
Pages 139-160

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History

  • Receive Date: 13 February 2018
  • Accept Date: 13 February 2018

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