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 P3 model. The US has now used that model to work on the infrastructure and in improving the country in many ways.
The country has a decaying infrastructure network that needs more repair and restoration than ever, but there has been an issue finding necessary funding for all of the projects. The need for funding is where selecting a public-private partnership and utilizing a private firms’ assistance has become an ideal model.
The result of this initiative has yielded competitive bids and more effective delivery. As many as thirty-three 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 in the coming years.
What Leads to the Rise of PPP in the US
Many factors have contributed to this rise. One such factor is the capital that the government can receive 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 through a P3 model and work to bring in quality over everything else. In 2018, there were private investments in Public projects of over $15 billion. Many myths surround these partnerships, contrary to one such myth, the ownership of the asset remains entirely with the public.
Governments are also finding this method of working very favorable from a budget standpoint. They get to see superior results in terms of quality and most importantly save time. In the past, these types of projects went on for far too long. However, thanks to new P3 models, 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 due to the growing population, it is not happening, and this has the country facing a looming crisis. With public-private partnerships, the US can get to work on a variety of projects sooner and with greater quality, including public water treatment. With several projects underway these models are already showing steady improvement.
Thanks to this model, the pressure on the government’s civic bodies has been reduced. They can now maximize their own spending and utilize partnerships for operations and management services as well. This is an excellent example the country has set for the world.
Interested in more P3 insights? Check out some of our other blogs on The History of the P3 Market and What's Next and the Top 5 ways to Align Vision of a PPP. If you want to learn more about how we develop effective strategies for public-private partnerships, reach out to us today to start a conversation.
