Demand-Risk P3s Are An Unhappy Family

Washington came out strong for P3s this month, but much of the talk was about user-fee financed concessions where the private sector takes the traffic demand risk. There was little mention of availability payment P3s where public sponsors take the traffic risk and control toll rates. Yet that approach now dominates the U.S. P3 market, and the rest of the world, largely because of the high cost to government of transferring demand risk to private investors.

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About Bill Reinhardt

Editor of Public Works Financing newsletter
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