Analysis of Funding Streams for Public Private Partnerships in the U.S. Transportation Sector

The U.S. Federal Highway Administration (FHWA) defines a public-private partnership (PPP or P3) as a contractual agreement formed between public and private sector partners, which allows more private sector participation than is traditional. Emphasis is placed on expanding the private sector’s role in designing, constructing, operating, maintaining, and especially financing infrastructure projects. Since the early 1990’s the number of PPP projects in the U.S. has continued to increase. Design-Build-Finance-Operate-Maintain (DBFOM) is one prominent type of PPP. As more U.S. transportation agencies investigate the possibility of utilizing PPP, a comprehensive analysis of the sources of funding used for PPP projects is needed to inform such key decisions. As such, this report aims to quantify funding streams in terms of both public and private contributions for DBFOM PPP projects in the U.S. transportation sector. The authors collected, compiled, and verified data through professional datasets and structured interviews with key project constituents. Out of a total 28 completed and on-going DBFOM transportation projects in the U.S. at the time of this study, the report presents results stemming from 26 such projects – a representation of about 93 percent. All projects in the dataset reached financial close between 1993 and 2014; project costs range from $44 million to $2.9 billion, and total approximately $28.3 billion. Results from the analysis show federal and state/local contributions account for about half of the total DBFOM funds, while private contributions account for the second half, making this a true partnership between the public and private entities. In other words, private funding allows for the delivery of twice as many projects using the same public funding available. This report fills a gap in knowledge about DBFOM PPP financial contributions by studying and benchmarking actual monetary investments from both public and private sources.

• Record URL:
  http://ntc.umd.edu/sites/default/files/documents/research/NTC2015-SU-R-04%20Mounir%20El%20Asmar.pdf
• 
• Summary URL:
  http://ntc.umd.edu/node/134
• Supplemental Notes:
  • This document was sponsored by the U.S. Department of Transportation, University Transportation Centers Program.
• Corporate Authors:

  National Transportation Center @ Maryland

  1173 Glenn L. Martin Hall
  University of Maryland
  College Park, Maryland  United States  20742

  Office of the Assistant Secretary for Research and Technology

  University Transportation Centers Program
  Department of Transportation
  Washington, DC  United States  20590
• Authors:
  • El Asmar, Mounir
  • Ramsey, David
  • Cho, Namho
• Publication Date: 2017-12

Language

• English

Media Info

• Media Type: Digital/other
• Edition: Final Report
• Features: Figures; References; Tables;
• Pagination: 24p

Subject/Index Terms

• TRT Terms: Design build; Financing; Government funding; Project delivery; Public private partnerships; Transportation operations
• Uncontrolled Terms: Design build finance operate maintain contracts
• Geographic Terms: United States
• Subject Areas: Administration and Management; Finance; Transportation (General);

Filing Info

• Accession Number: 01667165
• Record Type: Publication
• Report/Paper Numbers: NTC2015-SU-R-04
• Contract Numbers: NTC2015-SU-R-04
• Files: UTC, TRIS, ATRI, USDOT
• Created Date: Apr 25 2018 11:14AM