2019 CSCE Annual Conference - Laval (Greater Montreal)

2019 CSCE Annual Conference - Laval (Greater Montreal) Conference


Title
Public-Private Partnerships (P3s) in the US, Observed Obstacles to its Adoption, and Potential Solutions to Overcome the Challenges

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Author(s)
Dr. Lameck Onsarigo, Kent State University (Presenter)
Dr. Simon Adamtey, Kent State University
Abstract

A well-developed infrastructure system is crucial to the health of a nation’s economy. The ASCE’s 2017 Infrastructure Report Card rated America’s infrastructure at a D+ and highlighted the dire need for infrastructure investment in the US. According to the report card, the 10-year investment gap that must be bridged in order to achieve an infrastructure system fit for the 21st century is close to $2.0 trillion. The inability of government funding to bridge this investment gap, explains the recent growth in the market for public-private partnerships (P3s) in the US. P3s refer to contractual cooperation between public agencies and private entities to design, construct, finance, operate and maintain a facility or infrastructure. While other nations including the UK, Canada and Australia have highly utilized private financing and expert input to improve and update their infrastructure, the US is behind the curve when it comes to adoption of P3s. This paper presents result of an extensive literature review on P3s in the US and interviews with experts in the industry. The paper addresses the suitability of P3s in supplementing the conventional government efforts in rebuilding the US infrastructure. The paper also discusses the main obstacles to adoption and successful implementation of P3s in the US and proposes ways to overcome the obstacles and successfully execute a P3s