A Guide to Transportation Funding Options
Highway Funding – Public-Private Partnerships (PPPs)
More Information
PPP Case Studies - FHWA PPP website
PPP FAQs - FHWA PPP website
Model PPP Legislation and Interactive Map of State Legislation - FHWA PPP website
28 Key Elements of PPP Legislation - FHWA PPP website
Public-private partnerships refer to contractual agreements between a public agency and a private sector entity that allows for greater private sector participation in the delivery of transportation projects. Many public agencies at the local level have engaged with the private sector for development of local road projects. And there are currently 34 US states and one territory that have enacted legislation that enable the use of public-private partnerships.
Some of the primary reasons for public agencies to enter into public-private partnerships include:
- Accelerating the implementation of high priority projects by packaging and procuring services in new ways
- Turning to the private sector to provide specialized management capacity for large and complex programs
- Enabling the delivery of new technology developed by private entities
- Drawing on private sector expertise in accessing and organizing the widest range of private sector financial resources
- Encouraging private entrepreneurial development, ownership and operation of highways and/or related assets
- Allowing for the reduction in the size of the public agency and the substitution of private sector resources and personnel
The US DOT has prepared model legislation (see link in box, top right). The model provides states with examples of the basic elements to consider in authorizing PPP legislation.