Public Private Partnerships (often referred to as P3 or PPP) have emerged as a resource for government entities seeking to construct and/or improve public facilities in a cost-effective and time efficient manner. PPP involves a venture between a public sector authority and one or more private sector companies, in which the private parties supply project services and assume financial, technical and operational risk in the facility construction. These arrangements give the public entity the ability to spread the cost of the project over a long term.
This practice allows much needed projects that would otherwise be held up due to the lack of traditional public financing options to proceed forward. It has paved the way for privately financed, constructed, and even operated facilities to meet the build infrastructure requirements of public entities without significant initial cash commitments or tax increases.
Due to our knowledge of governmental regulations, our support of this initiative as an alternative funding resource and our current service as the project manager on PPP procurements, Broaddus & Associates is well positioned to immediately help owners foster and evaluate potential PPP projects.
Due to the complexity of the process and the requirements of the law, owners must have professional guidance when considering this initiative for their project. As a part of our services, Broaddus & Associates will assist owners in:
- Assessing whether PPP is in their best interests.
- Developing guidelines specific to PPP for their entity.
- Evaluating all aspects (physical, financial, and legal) of solicited and unsolicited proposals.
- Engaging interim and comprehensive operating and development agreements with private entities.
- Ensuring protection over the lifecycle of the agreement (which may last for 20 years or more).
Broaddus & Associates stands ready to consult with owners to determine if PPP is suitable for their projects.
Download the Broaddus & Associates P3 PDF.