What Is A P3 Project?

A P3 project is a contractual agreement between a public entity and private entity that:

  • Transfers the responsibility of a facility’s engineering, construction, operation and/or maintenance to the private sector for a defined period of time;
  • Allows the private sector to perform by contract a service previously provided by the public sector; and
  • Ensures the private firm receives payments either from existing revenue sources or through the collection of new tolls or user fees.

The two basic P3 project types are:

  • New Build Facilities – Adding capacity to the system by building something new.
  • Existing Facilities – Improving capacity or performance of the current system through a P3 arrangement.

Act 88 of 2012 authorizes public private transportation projects in Pennsylvania. This allows PennDOT and other transportation authorities and commissions in the state to enter into agreements with the private sector to participate in the delivery, maintenance and financing of transportation-related projects.