This Primer provides a brief introduction to public-private partnership (P3) concessions for transportation project finance. P3 concessions are public-private agreements in which the private sector takes on some of the risks and rewards of financing, constructing (or leasing), and operating and maintaining a transportation facility in exchange for the right to future revenues or payments for a specified term.
This primer will review the basic structure of a P3 project finance concession and introduce key public and private participants and their roles. It will also describe the motivations of public and private partners for entering into P3s, present some typical P3 concession characteristics, and clarify common misconceptions/misperceptions of what P3s can and cannot accomplish. Finally, the primer will outline typical P3 implementation steps and provide some examples of P3 concessions.