A P3, or public-private partnership, is a procurement model that uses an integrated approach to deliver infrastructure, incorporating design, construction, financing, operations and maintenance functions into the contract.
P3s are partnerships between a public entity and a group of private companies to deliver a public good or service. P3s offer a more efficient way to build, finance and maintain courthouses, transit systems, roads, bridges and water systems. P3s allow private capital to help finance projects. They also keep the ownership of the facility with the government.
P3s offer governments a way to transfer risks to the private sector, help ensure infrastructure projects are built on time and on budget, and better maintain public facilities over many decades, protecting the taxpayer.
- Design and Construction, Financing, Operations and Maintenance Partnership. Public sector enters into a long-term contract with private sector to deliver assets and services for the benefit of the general public.
- A Risk Sharing Approach. Private sector assumes financial, technical and operational risk, public sector sets policy and retains ownership.
- Lifecycle procurement approach that guarantees performance. By integrating design, construction, and financing, with operations and maintenance, the asset performance is optimized for the long-term.
- A Transparent Relationship. Public stakeholders have full control and can expect to be regularly updated and informed throughout the project.
- Privatization. Public sector retains ownership and ultimate control of public asset.
- A Funding Solution. Government agency pays for the project though the ability to leverage private financing not otherwise available through regular public procurement.
- A Low Quality Delivery Model. Private entity enters into a performance-based contract with financial penalties imposed by the public agency if availability and quality standards are not met.
- The Right Solution for Every Project. A value-for-money analysis is performed by experienced legal, technical and financial advisors to determine if a P3 is right for your project.