Synthesis of Public-Private Partnerships: Potential Issues and Best Practices for Program and Project Implementation and Administration

Public-private partnerships (P3s or PPPs) offer an innovative procurement method for the public sector. P3s involve collaborations between the public and private sectors to finance, develop or maintain transportation infrastructure. In an era of shrinking budgets and increased demand for transportation infrastructure, the Kentucky Transportation Cabinet (KYTC) can analyze experiences in other states to determine a best path forward on the issue of P3s. During the 2014 regular legislative session, the Kentucky General Assembly passed Kentucky House Bill (HB) 407, which would empower KYTC through the Kentucky Public Transportation Infrastructure Authority (KPTIA), to fund projects through P3 agreements. The governor eventually vetoed the bill. In the current 2015 legislative session, the General Assembly is considering Kentucky HB 443, which would authorize transportation P3s in Kentucky. The objective of this study is to examine benefits and drawbacks of using P3s, current trends and past performance of P3s in the procurement of state transportation infrastructure projects, and common legislative statutes relating to P3s. The team reviewed literature that broadly related to privatization. Then they defined P3s according to the parameters laid out by the Federal Highways Administration (FHWA). This report contains: 1) guidance and best practices that can be used to help ensure successful P3 implementation, 2) case studies that describe P3 experiences and lessons learned, 3) a list of factors that policymakers should consider as they deliberate on whether a P3 is the best procurement option for specific projects. The research conclusively demonstrated that P3s have become more widely used for transportation infrastructure projects in the United States in recent years. Policymakers must thoughtfully weigh risks and benefits before approving P3 agreements. If Kentucky moves ahead with a transportation P3 program, future research would be geared toward studying the performance of projects and toward gathering lessons learned.

  • Record URL:
  • Corporate Authors:

    University of Kentucky, Lexington

    Kentucky Transportation Center
    College of Engineering, 176 Raymond Building
    Lexington, KY  United States  40506-0281

    Kentucky Transportation Cabinet

    State Office Building, 200 Mero Street
    Frankfort, KY  United States  40622

    Federal Highway Administration

    1200 New Jersey Avenue, SE
    Washington, DC  United States  20590
  • Authors:
    • Gibson, Bryan
    • Wallace, Candice
    • Sturgill, Roy
  • Publication Date: 2015-8


  • English

Media Info

  • Media Type: Digital/other
  • Features: Appendices; References; Tables;
  • Pagination: 80p

Subject/Index Terms

Filing Info

  • Accession Number: 01574370
  • Record Type: Publication
  • Report/Paper Numbers: KTC-15-13/SPR15-500-1F
  • Contract Numbers: SPR15-500
  • Created Date: Aug 26 2015 7:42AM