Public-Private Partnerships: Addressing the Complete Spectrum of Civil and Infrastructure Projects
About Us

The P3 Institute LLC is an organization committed to bringing together public officials and members of the private sector in an effort to further public-private partnership (P3) projects across all asset classes.  Programs produced by The P3 Institute, such as our inaugural program in Miami-Dade, will afford government officials a platform to highlight both their current and future P3 programs and solicit input from the private sector.

Founded by an elite team of construction industry professionals, The Institute offers an opportunity to bring together thought leaders within the P3 sector and to jumpstart crucial P3 projects across the nation. Its growing membership includes public officials, industry associations, and private entities, all of whom uphold the common goal of improving our nation's infrastructure through the advancement of P3 projects.  

The Institute aims to provide its members with productive and cost-effective programming.  Every action of The Institute is focused on creating and enhancing public and private relationships by providing innovative networking events and forums to discuss future opportunities with local and nationwide government entities.
 
 
Why P3?
 
P3s leverage the best practices and unique advantages of both government and private enterprise to deliver efficient results and meet the growing demands of citizens everywhere.  The implementation of P3s in the United States is accelerating at a rapid rate, producing an increasing number of opportunities for contractors.  The state of the U.S. economy and the critical need for extensive infrastructure repairs and improvements have triggered increased discussions on the use of P3s, the enactment of statutory schemes to enable P3s in specific states, as well as the pursuit of P3 projects.  While the bulk of P3-enabling statutes to date have largely been limited to projects involving transportation, the use of P3s will continue to expand as limitations within existing statutory frameworks are eliminated and new statutes emerge. P3 projects involving water and waste water, social infrastructure (i.e. public buildings), parking, and energy are currently in progress across the U.S. 
 
P3s have unique legal, political, and financial attributes that must be understood and evaluated in order to successfully navigate the entire process from project pursuit through project completion, to mitigate the risk involved, and to perform successfully.
 
Over the next few years, it has been predicted that 10 to 25 percent of all new infrastructure will be procured using P3.  To be successful in this evolving market, it is imperative to understand the competitive tensions, risk allocation, and market potential of P3s.
 
Understanding P3 Project Details
 
LEGAL AUTHORITY FOR A P3
 
  • Who are the potential government owners of P3 projects?
  • Who has authority to engage in a P3?
  • Local (cities and counties) vs. state vs. federal jurisdiction
  • Home rule authority
  • P3 laws in each jurisdiction

THE BASICS: WHEN SHOULD A P3 BE USED OVER CONVENTIONAL, BID BUILD, OR DESIGN BUILD?
Understanding the limitations of municipal bonding and award to the low bidder
Understanding the value of money analysis and savings while factoring in life-cycle operations and maintenance (O&M) costs

TYPES OF P3 MODELS USED IN THE MARKETPLACE
 
Various combinations of design/build/finance/operate/maintain
Two general types of P3 structures: pure monetization of brownfield vs. greenfield new construction, where payback is either availability payment or user fee
Ownership structures: lease, concession, privatization
 
INDUSTRIES/ASSETS SUITABLE FOR DEVELOPMENT BY P3 PROJECT DELIVERY
 
  • Transportation (roads, bridges, airports, rail, ports)
  • Social infrastructure (university buildings and housing, parking structures, K-12 schools, courthouses, prisons, and other municipal buildings)
  • Utilities (water and wastewater, power, pipelines, and renewable energy)
 
 
FINANCING TOOLS: THE BASIC BUILDING BLOCKS OF THE CASH WATERFALL
 
  • Tax-exempt debt
  • Taxable debt
  • Project equity
  • PABs & TIFIA for transportation projects
 
UNDERSTANDING RISK ALLOCATION FOR CJV IN P3
 
  • Nontraditional risk assumption (e.g., differing site conditions, environmental conditions, permits and governmental approvals and variances, force majeure)
  • Traditional but heightened risk (e.g., warranty and “fitness for purpose standard”)
  • Extended duration of contractual warranty/liability exposure period
  • Risk due to timing disconnect between equitable adjustment payments to concessionaire – payments may not be made during construction but during operations (revenue) period
  • Disclaimer of owner – furnishes design information and reference documents
  • Flow-down provisions
  • Indemnification
  • Understanding the O&M and risk there, due to construction defects
P3 PROJECT TARGETING BASICS
 
  • How to engage potential private equity partners
  • Understanding where the P3 deal flow is (which states and cities)
  • Preparing and implementing the P3 capture plan across asset classes
 
P3 PROJECT APPROVAL PROCESS
 
  • Solicited vs. unsolicited proposals
  • When to form a team and approach the government customer
  • How to influence the solicitation process
  • Bid protests
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