Political Turnover Slows Transportation Public-Private Partnerships in 2015

Source: Sean Slone, Council of State Governments, The Current State, Issue: 21, June 22, 2015

The past year has seen the states of Florida, Indiana, Ohio and Pennsylvania close deals with the private sector to undertake some long-awaited transportation projects. But much of the talk at a recent conference on public-private partnerships, also known as P3s, revolved around why the market for such projects remains sluggish in the United States. … Joseph Aiello, chief of business development at the global infrastructure firm Meridiam, said uncertainty about what long-term role Washington will play in transportation funding is one factor keeping the P3 market from growing. …. Another significant factor holding back P3s, some say, is the impact of recent political turnover that has brought with it changing priorities in a number of states…. Speakers at the InfraAmericas forum also cited a number of other possible reasons the P3 market remains slow in the U.S., including:
• A continuing learning curve and knowledge gap among state officials when it comes to P3s;
• Recent challenges experienced by some P3 toll roads;
• The length of time it takes for projects to clear environmental hurdles and other obstacles;
• The complexity of the American market, including P3 laws that differ from one state and one jurisdiction to the next; and
• The complexity of the projects and the deals themselves. ….