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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

Public-Private Partnerships + Innovative InfrastructureMembers only Login
Robert Gamble from Public Financial Management presents on P3s and innovative infrastructure.

-Resources

View all Public-Private Partnership Resources

-Public-Private Partnerships (P3)

Clicking for Credit: Experiences of Online Lender Applicants From The Small Business Credit Survey
This report builds on previous publications to further examine the characteristics, financing experiences, and credit outcomes for three subsets of small business credit applicant firms: those that applied to only online lenders, those that applied to only banks, and those that applied to both online lenders and banks.
Investing in Rural ProsperityMembers only Login
The Federal Reserve has created this book to bring together community and economic development researchers, practitioners, philanthropists, and others to showcase the great work happening across this country and to outline a framework for conducting community and economic development that, if applied, can help more communities achieve shared economic prosperity.
CDFA - Frost Brown Todd LLC Infrastructure Finance Series: Public-Private Partnerships (P3) Financing for Energy
Interest in Public-Private Partnership (P3) finance is growing not only because state and the local governments realize the strength, flexibility, and efficiency of the P3 model, but because of the growing need for P3s to promote higher quality and greater coordination between public and private sectors. P3s are an asset for both capital and operating needs since projects can benefit from a private operating option and/or affordable capital provided by the bond and debt markets. When P3s are paired with bonds or other traditional financing, major energy infrastructure and related development projects become possible. Learn the different ways these renewable energy deals can be structured and the common characteristics and drivers of P3 financing throughout the country.
CDFA - Frost Brown Todd LLC Infrastructure Finance Series: Water Finance 101
Financing water, wastewater, and stormwater infrastructure can be costly for communities, but innovative financing can make it more economical. Three primary tools exist to support utility infrastructure – bond financing, state revolving loan funds, and the Water Infrastructure Finance and Innovation Act (WIFIA). Speakers will go in-depth into the common characteristics of these programs, the various structures of these deals, and key differences between these programs and bond financing. Listen as speakers provide insights on creative approaches to financing utility infrastructure including public-private partnerships (P3).
CDFA - Frost Brown Todd LLC Infrastructure Finance Series: Unlocking Capital for Infrastructure Projects
Across the nation a growing variety of infrastructure projects are utilizing complex and layered capital stacks. Speakers will discuss how utilities, housing, transportation, renewable energy, community facilities, and other community infrastructure are financed and the role of public finance in these developments. Learn about financing concepts behind infrastructure projects with a focus on raising capital to achieve targeted local and regional needs. This introductory episode will explore the key characteristics of financing and operating successful infrastructure projects and how communities can work with private sector partners to achieve mutual success.
View more Public-Private Partnership Resources

-Policies and Procedures

Value Capture Strategies and Public-Private PartnershipsMembers only Login
This FHWA webinar discusses how public-private partnerships (P3s) can be leveraged as a value capture strategy for highway-related projects. The webinar is intended for professionals from States, cities, counties, Tribes, and metropolitan and rural transportation agencies looking for innovative funding and financial strategies to pay for transportation projects.
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.
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-Structures

Value Capture Strategies and Public-Private PartnershipsMembers only Login
This FHWA webinar discusses how public-private partnerships (P3s) can be leveraged as a value capture strategy for highway-related projects. The webinar is intended for professionals from States, cities, counties, Tribes, and metropolitan and rural transportation agencies looking for innovative funding and financial strategies to pay for transportation projects.
CDFA - Ice Miller Broadband Financing Series: The Benefits of Broadband in Economic Development
There are many benefits that come with broadband access and adoption. From healthcare delivery and education to food and retail, the public has much to gain from broadband access. As part of our collaboration with Ice Miller, this video will explore the public- and private-sector benefits from enhanced broadband access and adoption.
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.
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

Value Capture Strategies and Public-Private PartnershipsMembers only Login
This FHWA webinar discusses how public-private partnerships (P3s) can be leveraged as a value capture strategy for highway-related projects. The webinar is intended for professionals from States, cities, counties, Tribes, and metropolitan and rural transportation agencies looking for innovative funding and financial strategies to pay for transportation projects.
CDFA - Ice Miller Broadband Financing Series: Case Studies of Taking a Project from Start to Finish
There are many models to financing broadband and finding the correct approach for your community may be challenging. As part of our collaboration with Ice Miller, this video will dive into the details of successful locally owned municipal network model in Dublin, Ohio. Learn about this ever evolving project from community leaders that have implemented this approach.
CDFA - Ice Miller Broadband Financing Series: Case Studies & Best Practices of Broadband in P3s
Public-Private Partnerships, or P3s, have been used across the country to finance broadband. As part of our collaboration with Ice Miller LLP, this video will cover best practices of the P3 model and provide case studies that explore the various avenues of broadband projects in both rural and urban areas.
Transportation Case Study - Portsmouth Bypass (OH State Route 823)Members only Login
In 2018, the Ohio Department of Transportation (ODOT) completed the Portsmouth Bypass—state Route 823. ODOT developed the project through a design, build, finance, operate, and maintain public-private partnership concession with a total cost of more than $1.2 billion. This case study from the Center for American Progress examines the project.
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.
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-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.
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-Webcasts

Value Capture Strategies and Public-Private PartnershipsMembers only Login
This FHWA webinar discusses how public-private partnerships (P3s) can be leveraged as a value capture strategy for highway-related projects. The webinar is intended for professionals from States, cities, counties, Tribes, and metropolitan and rural transportation agencies looking for innovative funding and financial strategies to pay for transportation projects.
Value Capture Strategies and Infrastructure Bank ProgramsMembers only Login
This FHWA webinar discusses how infrastructure banks tie into value capture strategies for highway-related projects. The webinar is intended for professionals from States, cities, counties, Tribes, and metropolitan and rural transportation agencies looking for innovative funding and financial strategies to pay for transportation projects.
Value Capture Strategies and Municipal Bonds and DebtMembers only Login
This FHWA webinar discusses how municipal bonds and debt can be used as a value capture strategy for highway-related projects. The webinar is intended for professionals from States, cities, counties, Tribes, and metropolitan and rural transportation agencies looking for innovative funding and financial strategies to pay for transportation projects.
Enhancing Local Workforce Development and Building for the Future
Automation, shifting demographics, COVID-19 and increased telework opportunities are reshaping the workforce landscape amid shifting industry needs. Counties, through local and regional partnerships and workforce development boards, are working with public, private, and nonprofit partners to help train job seekers and connect them with local employers.
CDFA // BNY Mellon Development Finance Webcast Series: Rural Broadband & Telehealth Financing Members only Login
During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, experts explain how rural communities can embrace the challenges of financing high-speed internet for the economic and societal gains provided by broadband.
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CDFA National Sponsors

  • BNY Mellon
  • Bricker & Eckler LLP
  • Bryan Cave Leighton Paisner LLP
  • Business Oregon
  • CohnReznick
  • FBT Project Finance Advisors LLC
  • Frost Brown Todd LLC
  • gener8tor
  • Hawkins Delafield & Wood LLP
  • Ice Miller LLP
  • KeyBanc Capital Markets
  • Kutak Rock LLP
  • McGuireWoods
  • MuniCap, Inc.
  • NW Financial Group, LLC
  • PGAV Planners, LLC
  • Raza Development Fund
  • SB Friedman Development Advisors
  • Stern Brothers
  • Stifel Nicolaus
  • U.S. Bank
  • Wells Fargo Securities
  • Z. The Bond Buyer
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