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5 Examples of Public-Private Partnerships in Implementation

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5 Examples of Public-Private Partnerships in Implementation

Industrialization has brought in different models of business development. Public sectors have ventured into one of the healthiest means to use the available resources in the private market more and more often. This calls for the public-private partnership model. One of the main advantages of the model is the reduction of financial pressure enforced on the state, and the overall time of execution is often lesser.

Here are 5 examples of P3 models in action, including the ones that have risked billions of dollars over a project, and hoping to turn around the fate for good.

1.     Face-lifting of Parks: In 2010 the Jefferson National Expansion Memorial, better known as the Gateway Arch, set out to revive its declining tourism numbers through a unique Public-Private Partnership wherein the Gateway Arch Park Foundation (at the time the CityArchRiver Foundation) raised $250 million in private funding and Great Rivers Greenway oversaw a publicly approved sales tax of St. Louis City and St. Louis County that raised an additional $86 million for the project. The largest Public-Private Partnership in National Park Service history opened in 2018 and has seen a 30% increase in attendance for the monument.

2.     Transportation: The year 2006 saw Cintra Concesiones de Infreastructuras de Transporte and Macquarie Infrastructure Partner started a deal to operate 157 miles of Indiana based highway. The company paid a onetime fee of 3.8 Billion USD for a 75-year lease to run the tollway and in return receive the toll revenue. An estimate shows this saves the state of Indiana 100 million USD for operating during the same time frame but the project has not reaped the anticipated financial returns for the company. This example has set the tone for investors who failed to exercise the caution in bids for the contract papers and are now falling short of revenues.

3.     IT: Information Technology products like high speed and wireless internet have been deployed with private parties in the last few years. Seattle in 2012, announced a deal with Gigabit Squared for providing high-speed fiber cable connections to all the residents.

4.     Gaming: 2011 saw Illinois incorporating lottery systems with the P3 model. This was a masterstroke as a 10-year deal with Northstar Lottery Group, with a partnership of 3 companies was awarded the contract. From that year itself, the company has been rewarded with record sales and the model became successful overnight.

5.     Education: PPP is responsible for developing some of the top classrooms for public schools, and this comes with high-quality infrastructure. Most of these were converted from a past company serving other products. For instance, two schools in Phoenix, share 300,000 sq ft., which once was the Maryvale Mall.

Conclusion

All these examples show us the reality of P3 models today. In the end, all depends on how the negotiations have taken place. The ones with productive analysis have reaped better results than those with unsatisfactory talks.