Public Works Financing: The P3 development of transportation projects in the U.S. is trending sharply away from demand risk and toward availability payment models where developer financing is repaid with government funds once performance requirements are met.

The availability payment-for-performance model offers timely completion, long-term budget certainty, contractually defined performance standards, taxpayer protection from cost overruns, built-in warranty for defective design and construction (since government pays only when lanes are available for use), and lower life-cycle costs derived from design choices and regular maintenance.

Discussion leader Jonathan Startin, HNTB

View PWF P3 Research Roundtable webcast 1/14