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Public-Private Partnership (P3) Finance Resource Center

Read more about this Tool

A public-private partnership (P3) is a contractual arrangement where a government agency contracts with a private partner to renovate, construct, operate, maintain, and/or manage a facility or system that provides a public service.


The government agency may retain ownership of the public facility or system but the private party generally invests its own capital to design and develop the facility or system. Typically, each partner shares income resulting from the partnership. Such a venture can differ from typical service contracting in that the private sector partner may make a substantial cash, at-risk, equity investment in the project, and the public sector gains access to new revenue or service delivery capacity without having to pay the private-sector partner.


The underlying strength of the P3 model is that the private sector has sufficient P3 capacity (expertise and availability) to successfully deliver project objectives. When paired with the power of bond financing, this tool shows great promise for U.S. infrastructure, services and development. It should be noted that in most cases, there must be a legal statutory authority provided by the government to enter into P3 transactions. In relationship to bond financing, P3s are a natural fit as many projects can benefit from not only the private management structure but also from the access to affordable capital provided by the bond markets.


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-Understanding Public-Private Partnerships

Do you want to learn to be a better partner? This section contains resources on understanding the basics of public-private partnerships.

Read more about Public-Private Partnerships.

Unique Models and Other Ways to Think About P3Members only Login
Rowan Mills with Arup presents on Unique Models and Other Ways to Think about P3 during the Intro P3 Finance WebCourse.
P3 in the United States: Key Characteristics and Drivers - Jesse KulaMembers only Login
Jesse Kula with Bostonia Partners presents on P3 in the United States: Key Characteristics and Drivers during the Intro P3 Finance WebCourse.
Public-Private Partnerships + Innovative InfrastructureMembers only Login
Robert Gamble from Public Financial Management presents on P3s and innovative infrastructure.
Negotiating the Terms
Greg Daniels from Squire Patton Boggs presents on negotiating terms in P3 deals.
Public-Private Partnerships: An Introduction
Dennis Enright from NW Financial Group presents an introduction to public-private partnerships.

-Resources

View all Public-Private Partnership Resources

-Public-Private Partnerships (P3)

Creative P3 Approaches for DFAs of All Sizes - Bob Lamb, Rob PlatteMembers only Login
Bob Lamb and Rob Platte present on Creative P3 Approaches for DFAs of All Sizes.
Public Private Partnership Best Practices - David Rogers, Geoff Dickinson, Seth KirshenbergMembers only Login
David Rogers, Geoff Dickinson, and Seth Kirshenberg present Public Private Partnership Best Practices.
CDBG Partnership Challenges and Opportunities at the Local, State, and Federal LevelsMembers only Login
HUD issued this report in October 2019 to identify opportunities and challenges for Federal, State, and local governments to partner with nonprofit organizations to complete community development, revitalization, and rehabilitation projects using the Community Development Block Grant (CDBG) program.
Regional Resilience Toolkit: 5 Steps to Build Large Scale Resilience to Natural DisasterMembers only Login
Cities, regions, and states across the country are facing natural disasters that can have devastating effects on life, property, the economy, and ecosystems. Climate change is already having observable effects on the environment, and past conditions are no longer a reliable indication of the type or extent of disasters communities will face in the future.
Public-Private Partnership (P3) Procurement: A Guide for Public OwnersMembers only Login
This Public-Private Partnership Procurement Guide (Guidebook) provides advanced guidance on procedures, issues, and considerations involved in public-private partnership (P3) procurement of surface transportation projects, with a focus on highway and transit investments.
View more Public-Private Partnership Resources

-Policies and Procedures

Public-Private Partnership (P3) Procurement: A Guide for Public OwnersMembers only Login
This Public-Private Partnership Procurement Guide (Guidebook) provides advanced guidance on procedures, issues, and considerations involved in public-private partnership (P3) procurement of surface transportation projects, with a focus on highway and transit investments.
GASB Draft P3 and Availability Payment Arrangements Members only Login
The Governmental Accounting Standards Board (GASB) is responsible for (1) establishing and improving standards of state and local governmental accounting and financial reporting to provide useful information to users of financial reports and (2) educating stakeholders on how to most effectively understand and implement those standards.
CDFA // BNY Mellon Webcast Series: Analyzing Public-Private Partnership LegislationMembers only Login
During this installment of the CDFA // BNY Mellon Webcast Series, Jill Jamieson with JLL and Hilary Jackler with Kutak Rock LLP highlighted various successful P3 state statutes across the U.S. as well as best practices in crafting P3 legislation.
Public Private Partnerships in Ohio for Infrastructure, Transportation, Energy & Development Projects Members only Login
Just as infrastructure development acts as a catalyst for economic growth, it is also changing the landscape for potential investors and the expanding field of infrastructure finance. As budgets are stretched and new rules are created, it can be difficult to pull together funding for necessary infrastructure improvements and community facilities. David Rogers with Frost Brown Todd LLC and Ryan Sullian with Signet Capital present case studies and explore proven approaches for implementing a successful P3 project in Ohio, where there is no official P3 statute.
Innovative Infrastructure Finance in Missouri: Public-Private Partnerships Members only Login
Just as infrastructure development acts as a catalyst for economic growth, it is also changing the landscape for potential investors and the expanding field of infrastructure finance. Infrastructure systems for transportation, utilities, and public works are essential for economic growth and have quickly developed into an emerging alternative asset class. Charles Renner with Husch Blackwell discusses how infrastructure projects in Missouri have been completed utilizing P3.
View more Policies and Procedures Resources

-Structures

Public-Private Partnership (P3) Procurement: A Guide for Public OwnersMembers only Login
This Public-Private Partnership Procurement Guide (Guidebook) provides advanced guidance on procedures, issues, and considerations involved in public-private partnership (P3) procurement of surface transportation projects, with a focus on highway and transit investments.
Understanding the Risks and Rewards of P3sMembers only Login
This resource helps readers grasp the basics of public-private partnerships, risk management, risk allocation, and the role of policymakers in P3s. It first appeared in the Governing Guide to Financial Literacy, Volume 3.
GASB Draft P3 and Availability Payment Arrangements Members only Login
The Governmental Accounting Standards Board (GASB) is responsible for (1) establishing and improving standards of state and local governmental accounting and financial reporting to provide useful information to users of financial reports and (2) educating stakeholders on how to most effectively understand and implement those standards.
Avoiding the Potholes: U.S. P3s and Takeaways for Investors and Grantors Members only Login
This recent report from Fitch Ratings highlights the completion risk inherent in new P3 projects. While most projects were successful meeting and, in some cases, beating construction schedules and budgets, several struggled in the completion phase for a multitude of reasons, including delays in third-party approvals; contractor troubles, etc.
Public Private Partnerships in Ohio for Infrastructure, Transportation, Energy & Development Projects Members only Login
Just as infrastructure development acts as a catalyst for economic growth, it is also changing the landscape for potential investors and the expanding field of infrastructure finance. As budgets are stretched and new rules are created, it can be difficult to pull together funding for necessary infrastructure improvements and community facilities. David Rogers with Frost Brown Todd LLC and Ryan Sullian with Signet Capital present case studies and explore proven approaches for implementing a successful P3 project in Ohio, where there is no official P3 statute.
View more Structures Resources

-Programs Map

Search the map below to find Public-Private Partnership (P3) legislation by state. This specialized search is part of CDFA's State Financing Program Directory, the only online resource cataloging the development finance programs offered by state governments. Click on a state to see a sample of programs available. Login with a CDFA Member account at the top of the page to view full results.

-Case Studies

CDBG Partnership Challenges and Opportunities at the Local, State, and Federal LevelsMembers only Login
HUD issued this report in October 2019 to identify opportunities and challenges for Federal, State, and local governments to partner with nonprofit organizations to complete community development, revitalization, and rehabilitation projects using the Community Development Block Grant (CDBG) program.
P3 Case Studies - John WendlingMembers only Login
John Wendling with UMB Bank presents on P3 Case Studies during the Intro P3 Finance WebCourse.
Supporting Healthy Food Access in NCMembers only Login
The resulting lack of access to healthy, affordable food undermines the health and well-being of children and families, and further harms communities that are already struggling economically. The report led to a series of convenings of key stakeholders charged with developing recommendations for increasing access to healthy, affordable foods for residents in both urban and rural underserved areas throughout the state.
Avoiding the Potholes: U.S. P3s and Takeaways for Investors and Grantors Members only Login
This recent report from Fitch Ratings highlights the completion risk inherent in new P3 projects. While most projects were successful meeting and, in some cases, beating construction schedules and budgets, several struggled in the completion phase for a multitude of reasons, including delays in third-party approvals; contractor troubles, etc.
Public Private Partnerships in Ohio for Infrastructure, Transportation, Energy & Development Projects Members only Login
Just as infrastructure development acts as a catalyst for economic growth, it is also changing the landscape for potential investors and the expanding field of infrastructure finance. As budgets are stretched and new rules are created, it can be difficult to pull together funding for necessary infrastructure improvements and community facilities. David Rogers with Frost Brown Todd LLC and Ryan Sullian with Signet Capital present case studies and explore proven approaches for implementing a successful P3 project in Ohio, where there is no official P3 statute.
View more Case Studies

-Headlines

-Publications

Practitioner's Guide to Economic Development Finance
The Practitioner's Guide to Economic Development Finance 2nd Edition is the only comprehensive resource dedicated to building and utilizing the development finance toolbox. The Practitioner's Guide provides the insight and practical information needed to critically understand how economic development is financed and the tools, strategies and techniques used to build strong communities. From bonds, tax increment finance and special districts to tax credits, seed & venture capital, revolving loan funds and much more, this Guide outlines the financing tools required for succeeding in today's competitive economic development climate.
Unlocking Capital: A Handbook for Becoming a High Performing Development Finance Agency
Unlocking Capital: A Handbook for Becoming a High Performing Development Finance Agency (Handbook) serves as a companion to the Practitioner’s Guide to help illuminate the structures of development finance agencies (DFAs), essential conduits to access development finance tools. The Handbook provides an overview of DFAs and their myriad roles in various development efforts. Included in this discussion is a comprehensive look at over a dozen high-performing DFAs throughout the country. The Handbook is designed to be a starting point for local leaders to engage in the creation or acceleration of a DFA to build and utilize the development finance toolbox.
View more Publications

-Training Courses

The Intro Public-Private Partnership (P3) Finance WebCourse examines this emerging development finance model with a focus on how development finance agencies can adopt P3 principles to address a variety of projects. This course covers basic P3 concepts, key players involved in transactions, asset valuation, contract negotiation, risk assessment, revenue stream development, and feasibility analysis. In addition, several P3 projects from across the country will be presented, and P3 experts will analyze the successful elements in each deal.

View more Training Courses

-Upcoming Events

Fundamentals of Economic Development Finance WebCourse
January 29-30, 2020
Daily: 12:00 - 5:00 PM Eastern
The Fundamentals WebCourse is the foundation for all of CDFA’s educational offerings. This course helps attendees understand the variety of development finance tools available, from bonds, tax credits and TIF, to federal financing programs, RLFs, and access to capital lending resources.
Register
CDFA Federal Policy Conference
April 14-15, 2020
Washington, DC
The federal government plays a critical role in driving private and public investment in innovation, job creation, infrastructure, and community development. With the 2020 presidential election quickly approaching, development finance will be a key policy issue across the nation. The 116th Congress will also play a major role in shaping our country’s economic development policy going forward. It's up to the development finance community to focus the national discussion on smart federal policy, and CDFA is the voice of the economic development finance community on Capitol Hill. For these reasons, CDFA will host its CDFA Federal Policy Conference on April 14-15 in Washington DC.
Register
View more Upcoming Events

-Webcasts

CDFA // BNY Mellon Webcast Series: The Landscape of Mega Project InitiativesMembers only Login
During this installment of the CDFA // BNY Mellon Webcast Series, expert speakers from CAI Global, Baltimore Development Corporation, Arlington Economic Development, and VEDP provided an in-depth overview of the approaches being used by cities, counties, and states to attract mega projects like Amazon HQ2 and Under Armour.
CDFA // BNY Mellon Webcast Series: Analyzing Public-Private Partnership LegislationMembers only Login
During this installment of the CDFA // BNY Mellon Webcast Series, Jill Jamieson with JLL and Hilary Jackler with Kutak Rock LLP highlighted various successful P3 state statutes across the U.S. as well as best practices in crafting P3 legislation.
CDFA // BNY Mellon Webcast Series: Financing the Nation’s Transportation Needs One Community at a TimeMembers only Login
Federal, state, and local funding for transportation is woefully inadequate to cover the costs of maintenance and improvements needed. Although this subject is often discussed on a national level, it often remains a local issue for local communities to address. From bridges and roadways to water and energy, local communities are developing creative strategies to address their growing infrastructure needs.
CDFA // BNY Mellon Webcast Series: Opportunities and Advancements in Water FinanceMembers only Login
During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, learn from expert speakers Jordan Dorfman from the EPA, Tyler Old from PFM, John DeLuca from CoBank, and Jong Sook Nee from McManimon, Scotland & Baumann, LLC as they discuss developments in the water finance space and how different financing mechanisms like bonds, RLFs, P3s, and other tools are being used to address today’s water infrastructure projects.
CDFA // BNY Mellon Webcast Series: Post-Election Development Finance LandscapeMembers only Login
This month’s CDFA // BNY Mellon Development Finance Webcast Series on the post-election development finance landscape featured Toby Rittner of CDFA, Eric Silva of North South Government Strategies, George Friedlander of George Friedlander Consulting, and David Terry of NASEO.
View more Webcasts

CDFA National Sponsors

  • Alaska Industrial Development and Export Authority
  • Baker Tilly Virchow Krause
  • BNY Mellon
  • Bricker & Eckler LLP
  • Bryan Cave Leighton Paisner LLP
  • Business Oregon
  • CohnReznick
  • FBT Project Finance Advisors LLC
  • Fifth Third Bank
  • Frost Brown Todd, LLC
  • Hawkins Delafield & Wood LLP
  • Ice Miller LLP
  • KeyBanc Capital Markets
  • Kutak Rock LLP
  • McCarter & English, LLP
  • McGuireWoods
  • MuniCap, Inc.
  • NW Financial Group, LLC
  • Petros PACE Finance
  • SB Friedman Development Advisors
  • Stern Brothers
  • Stifel Nicolaus
  • U.S. Bank
  • Wells Fargo Securities
  • Wilmington Trust
  • Z. The Bond Buyer
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