by Julia Pulidindi
As local governments are looking for alternative financing options for their transportation initiatives, public-private partnerships (PPPs) are becoming an increasingly attractive solution for them.
PPPs are used regularly in several sectors, including water and wastewater, education, health care, corrections, building construction power, parks and recreation and technology, but they are most known for their contribution to transportation related projects. These partnerships for transportation initiatives benefit both the public and private sector in terms of time and cost savings for local entities and provide an opportunity for a return on the investment for private funders.
While there are pros and cons to these partnerships, and they do not necessarily provide a one-size-fits-all solution to the funding challenges local governments are facing, they are certainly tools local elected officials might want to consider in the face of constrained budgets and limited federal funding sources.
Public-Private Partnerships for Transportation Projects is a new municipal action guide that describes PPPs, specifically for developing transportation and transit projects. It presents some of the common structures used for transportation financing and development, the benefits and risks, strategies for effective implementation and real-life examples that detail successes as well as challenges. The guide can be found on the Infrastructure page of NLC's website.
For questions about this resource or NLC's work on infrastructure, please contact Julia Pulidindi at firstname.lastname@example.org or 202-626-3176.