Public-Private Partnerships (P3s)
The need for public infrastructure regularly outpaces available government funds. As such, the public sector is forced to make difficult decisions about the projects that take priority, which is not an easy task when much of the world's infrastructure is in need of repair or replacement. To help curb this deficiency, the public sector can enter into a partnership with the private sector by way of a Public-Private Partnership (P3). With more than 35 years experience successfully delivering P3 projects in North America, HDR has the ability to help clients understand the risks, misconceptions and benefits of this increasingly popular delivery method.
Public-Private Partnerships are contractual agreements between the public and private sectors. They enable public sector agencies (federal, state or local) to use the services of private sector entities to share infrastructure development costs and risks. At their best, P3 projects take advantage of the skills and capabilities of both sides, better serving the public by delivering high quality infrastructure at the best value. As an added benefit, they provide efficiencies that free up public funds for other core economic and social programs.
Our experience with P3 projects led us to create a proprietary approach that we call P3PM® (Public-Private Partnership Program Management). The P3PM® Process provides a clear, concise approach to P3 projects that promotes continuous communication and collaboration among all parties. This process can effectively manage any type of P3 program and assist public sector entities in achieving the greatest overall quality, efficiency and cost effectiveness. By using this process, we can craft P3 development programs that address critical public needs while incorporating sufficient benefits to attract and secure private sector participation. We can also navigate the potential pitfalls, prudent P3 development strategies, and demands of private party procurement.
Many public agencies have found that the most effective way to undertake P3s is with the guidance of an outside advisor, one able to steer projects toward optimal outcomes. In addition to providing design, planning and consulting services on P3 projects throughout North America, we can guide P3s with the following services:
- P3 Feasibility Studies (Value for Money)
- Business Cases, Market Assessments and Economic Analysis
- P3 Concept Planning, Testing and Public Service Comparator
- Deal Structuring & Developer Solicitations
- Proposal Evaluations & Contract Negotiations
- Implementation Support & Assistance