The Future of Our Construction Industry: Types of Public Private Partnerships

Types and Descriptions of Public Private Partnerships

Public Private Partnerships can be described as the future for infrastructure projects. During the construction crisis, viable alternatives are being studied for promoting a better infrastructure using a small amount of money from local government. Public Private partnership can be the solution to financing problems, completion of jobs and investing in large projects without sacrificing the government finances.

There are several types of Public Private Partnership, depending on the needs, options available and the size of the project being considered. We can affirm that the best suited options to be executed as using Public Private Partnerships, or P3, are power generator projects and infrastructure projects.



1
Operation and Maintenance

Bridges and tollways can be P3 projects
public-private partnership. J Rodriguez

The private component of the partnership operates and maintain the installation of the project, while the public agency acts as the owner of the project.

2
Traditional

Traditional P3 Projects
Traditional P3 Projects. J Rodriguez

The public component of the partnership acts as a contracting officer; look for funding, and has the overall control over the project and its assets.

 



3
Design-Build

Port of Miami has P3 projects
P3 projects can be combined. Photo J Rodriguez
The private partner designs and builds the facility; while the public partner provides the funds for the project, and has control over the possession and assets generated by the project.

4
Design-Build-Operate

Stadium can be built using P3 approach
Stadiums are a great P3 opportunity. Photo MillhouseInc

The private partner designs, builds, and operates the facility or project. The public partner acts as the owner of the installation and get the fund for construction and operation.

5
Design-Build-Operate-Transfer

Highways are P3 projects
P3 projects. Photo J Rodriguez
The private partner designs, builds, and operates, for a limited time, the project, and after that specific period of time, the facility is transferred to the public partner.

6
Design-Build-Finance-Operate

Marine and air terminals are good P3 Projects
Combined P3 projects. Rendering Provided

The private sector provides finance, design, build, possess and operates the project, while the public partner only provides funding while the project is being used or active.

7
Build-Transfer-Operate

Subways are great under P3
Subways are great under P3. Photo J Rodriguez
The private partner builds and transfers the project to the corresponding public partner. Afterward, the public partner chooses to lease the operation of the facility to the private sector, under a long-term leasing agreement.

8
Build-Own-Operate-Transfer

public private can also be related to medical campus
Medical campus under a public-private partnership. Photo J Rodriguez
The public partner builds, possess and operate the project for a limited time, until some time when the installation is transferred, free of charge, including ownership to the public agency.

9
Build-Own-Operate

Private funding means less risk?
Private funding means less risk?. Photo J Rodriguez
The private sector must build, possess and operate the facility and has control over profits and losses generated by the facility through time. It is similar as a privatization process.

10
Lease

Stadium can be built using P3 approach
Stadiums are a great P3 opportunity. Photo MillhouseInc
The public owner leases the facility to a private firm. The private company must operate and will provide maintenance for the facility per specified terms, including additions or remodeling process.

11
Concession

Large projects built under P3
Public-private could be your best option. Photo HNTB
The public agency will be partnering with a private company, conceding all exclusive rights to operate, maintain for a specific period of time, under specific contract terms. The public partner will have the power over the ownership, but the private partner will possess owner rights over any addition incurred while being operated under its domain.

12
Divestiture

Jubail II
Jubail II. Photo Bechtel
The public partner will make a complete or partial transference of the installation to the private sector. The government might include specific clauses in the sales agreement requiring investment and modernizations on the facility, and a continuation of the services being provided.

The World is Moving into P3

With limited funding and increased constraints, many government agencies are looking into the different models of P3 as a way to maintain infrastructure updated without having to make large investments. These type of projects can be very useful but their costs need to be controlled very closely to make then cost-effective solutions.