What is ACEC’s Position on Public-Private Partnerships (P3s)?
P3s can be an alternative for delivery of infrastructure with the potential to provide value for money when implemented appropriately on the right projects. P3s can provide owners with alternative options for financing of major capital expenditures and for allocating project risk. The integration of design, construction and operations also offers opportunities to achieve life-cycle savings.
However, P3 is not a panacea and is not suitable in all circumstances. Regardless of the delivery model, the taxpayer is still responsible for the cost. Owners must carefully assess each project to determine whether a conventional delivery model like “design-bid-build” or a P3 will deliver greatest value for money under the specific circumstances. In any form of project delivery, including P3s, the best results are achieved when the scope is clearly defined, there is a fair sharing of risk and reward among the parties and when risk is allocated to the party best able to manage that risk.
For further background and information, see ACEC’s 2010 P3 report.