Availability Payment or Revenue-Risk P3 Concessions? Pros and Cons for Highway Infrastructure

This report looks at the pros and cons of public-private partnerships (P3) utilizing availability-payment (AP) concessions as opposed to revenue-risk (RR) concessions for highway projects. It compares and contrasts both types of contractual agreements and provides case studies of concessions used by State departments of transportation. It begins by defining P3 concessions and discusses recent trends towards AP concessions. Next the benefits and limitations of AP concessions for highways are discussed. Finally, how States classify their AP obligations and how rating agencies account for AP concessions are outlined.

• Record URL:
  • https://reason.org/wp-content/uploads/2017/11/infrastructure_availability_payment_revenue_risk_concessions.pdf
• 
• Authors:
  • Poole Jr, Robert W
• Publication Date: 2017-11

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References; Tables;
• Pagination: 48p
• Serial:
  • Policy Brief
  • Issue Number: 458
  • Publisher: Reason Foundation
  • Serial URL: https://reason.org/policy_brief/

Subject/Index Terms

• TRT Terms: Alternatives analysis; Benefits; Case studies; Contracts; Financing; Highways; Public private partnerships; State departments of transportation
• Subject Areas: Finance; Highways;

Filing Info

• Accession Number: 01682608
• Record Type: Publication
• Files: TRIS
• Created Date: Oct 2 2018 5:19PM