States Diversifying Use of Public-Private Partnerships in Infrastructure

Source: Sean Slone, Council of State Governments, May June 2016

When U.S. Secretary of Transportation Anthony Foxx finished his remarks at the recent InfraAmericas conference on public-private partnerships, or P3s, in New York City, Kentucky state Rep. Leslie Combs was first to the microphone for the Q&A. “We just passed P3 legislation in Kentucky,” said Combs, who this spring authored the legislation that allows Kentucky, like 33 other states, Puerto Rico and the District of Columbia, to enter into P3s to build infrastructure projects. … But Kentucky’s first announced infrastructure P3 is not a toll road or a major bridge project. In fact, at the behest of anti-toll interests in the northern part of the state, Kentucky’s legislation specifically prohibits the use of tolls on any P3 project connecting Kentucky and Ohio, such as a potential replacement for the functionally obsolete Brent Spence Bridge. Instead, the commonwealth’s first P3 project is KentuckyWired, a partnership to create a statewide, open-access fiber optic broadband network. …

… Indeed many of the infrastructure P3 projects garnering the buzz at this year’s InfraAmericas forum were somewhat different from those the U.S. P3 industry has become accustomed to over the last decade. The conference highlighted projects at major U.S. airports and on university campuses. There were transit project P3s, alternative fuel, highway lighting and water infrastructure projects and a variety of social and civic infrastructure projects—public buildings and the like—in the spotlight as well.