The United States: World's Largest Emerging P3 Market
United States: World’s Largest Emerging P3 Market
It is a fact that the US is now the world leader when it comes to making the best of the PPP model. The US has now used the same to work on the infrastructure and in improving the country in many ways.
The country has a decaying infrastructure that needs more repair and restoration than ever, but this has been an issue finding necessary funding for all of the projects. It also is where deciding to go with a public-private partnership and take private firms’ assistance has become an ideal scenario.
The result of this initiative has yielded competitive bids and faster and better delivery. As many as 33 states have given the green light on the utilization of public-private partnerships. In recent years, the US has engaged more and more P3 Models for large-scale projects. This is all set to grow further.
What Leads to the Rise of PPP in the US
Many factors contribute to this rise. One such is the capital that the government can get from private firms. The states willing to improve their infrastructure in business areas are trying to gain access to more capital. The government willingly seeks private firms to join hands on a P3 model and work to bring in quality over everything else. Many myths are surrounding this partnership, contrary to one such myth, the ownership of the asset remains entirely with the public. In 2018, there were private investments in Public projects of over $15 billion.
Governments are also finding this method of working very favorable from a budget standpoint, and they get to see superior quality results and most importantly save time. In the past, these projects went on for far too long. However, thanks to these PPP model projects, only 10% of these projects missed their deadlines.
More to Come in the Future
Every state in the US is currently trying to revive its infrastructure. But thanks to the growing population, it is not happening, and this has put the country into a looming crisis. With Public-private partnerships, the US can get to work on a variety of projects, including public water treatment, better and faster. With several projects underway they are showing steady improvement.
Thanks to this model, the pressure on the government’s civic bodies has gone down. They can now maximize their own spending and gain partnerships for operations and management services. This is an excellent example the country has set for the world today.