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'''Public-private partnerships (<nowiki>'''</nowiki>PPP<nowiki>'''</nowiki> or <nowiki>'''</nowiki>P3<nowiki>'''</nowiki>)''' are cooperative arrangements between two or more [[Public sector|public]] and [[private sectors]], typically of a long-term nature.<ref name="Hodge, G 2007 pp.54ku558">Hodge, G. A and Greve, C. (2007), Public–Private Partnerships: An International Performance Review, Public Administration Review, 2007, Vol. 67(3), pp. 545–558</ref> In the [[United States]], they mostly took the form of [[Toll roads in the United States|toll roads concessions]], which emerged in the mid to late nineteenth century.<ref name=":1">David T. Beito and Linda Royster Beito,[https://ift.tt/3cqTzAc ''"Rival Road Builders: Private Toll Roads in Nevada, 1852-1880,*''] Liquid error: wrong number of arguments (given 1, expected 2) Nevada Historical Society Quarterly 41 (Summer 1998), 71–91.</ref> In recent years, there has been interest in expanding P3s to multiple infrastructure projects, such as schools, universities, government buildings, waste and water. In the early 2000s, P3s were implemented sporadically by different [[U.S. state|States]] and municipalities with little federal guidance. During [[Obama's second term]], multiple policies were adopted to facilitate P3 projects, and [[United States Congress|Congress]] passed bills in that direction with overwhelming [[Bipartisanship|bipartisan]] support.<ref name=":2"></ref> [[My Brother's Keeper Challenge]] is an example of a public–private partnership.<ref name="NYTLaunch"></ref>
== Origins ==
[[Public–private partnership|Public-private partnerships]] in America have existed in one form of another since the beginning of the [[Thirteen Colonies|colonial period]], as [[Colonial charters in the Thirteen Colonies|colonial charters]] were based on a partnership between the British Crown and a company responsible for colonisation.<ref>Liquid error: wrong number of arguments (given 1, expected 2)</ref> Much of the early infrastructure of the United States was built by what can be considered public-private partnerships. This includes the Philadelphia and Lancaster Turnpike road in Pennsylvania, which was initiated in 1792,<ref>Liquid error: wrong number of arguments (given 1, expected 2)</ref> an early steamboat line between [[Gibbons v. Ogden#Background|New York and New Jersey]] in 1808; many of the railroads, including the nation's [[United New Jersey Railroad and Canal Company#History|first railroad]], chartered in New Jersey in 1815; and most of the modern [[Energy policy of the United States|electric grid]].Liquid error: wrong number of arguments (given 1, expected 2) In the mid to late nineteenth century, [[Toll roads in the United States|toll roads concessions]] were first introduced in the United States. This became the dominant form of P3s in the country during the 20th century.<ref name=":1" />
Public-Private Partnerships became standardized in countries such as the [[Private finance initiative|United Kingdom]], [[Public-private partnerships in Canada|Canada]] and [[Public-private partnerships in Australia|Australia]] during the 1990s and 2000s with strong encouragements from their national governments. The United States followed suit during Obama's second term, with the adoption of the ''Fixing America’s Surface Transportation Act (FAST)'' and the ''Water Infrastructure Finance and Innovation Act (WIFIA)'' by Congress. The [[United States Department of Transportation|Department of Transportation]] also created the ''Build America Transportation Investment Center (BATIC'') to help P3s access federal credit and facilitate their implementation.<ref name=":2" />
== Motivations ==
Pressure to change the standard model of public procurement arose initially from concerns about the level of [[public debt]], which grew rapidly during the [[macroeconomic]] dislocation of the 1970s and 1980s. Governments sought to encourage private [[investment]] in [[infrastructure]], initially on the basis of [[accounting]] fallacies arising from the fact that public accounts did not distinguish between recurrent and capital expenditures.<ref></ref>
U.S. city managers' motivations for exploring P3s vary. According to a 2007 survey, two primary reasons were expressed: cost reduction (86.7%) and external fiscal pressures, including tax restrictions (50.3%). No other motivations expressed exceeded 16%. In the 2012 survey, however, interest had shifted to the need for better processes (69%), relationship building (77%), better outcomes (81%), leveraging resources (84%), and belief that P3s are "the right thing to do" (86%)." Among those surveyed, the provision of public services through contracts with private firms peaked in 1977, at 18%, and has declined since. The most common form of shared service delivery now involves contracts between governments, growing from 17% in 2002 to 20% in 2007. "At the same time, approximately 22% of the local governments in the survey indicated that they had brought back in-house at least one service that they had previously provided through some alternative private arrangement.<ref name="JR-study"></ref>
== California ==
San Diego has entered into numerous PPP agreements. "San Diego has used P3s more extensively and, with Petco Park, on a larger scale than is typical of cities elsewhere".<ref name=":0"></ref> One explanation for San Diego's propensity towards P3 agreements is "...local residents refuse to tax themselves to pay for public benefits and prefer private-sector actors to take the lead...".<ref name=":0" /> "...tax shares are usually linear functions of property values..., jurisdictions have an incentive to try to exclude those who would have below-average property values. The incentive leads to such local policies as minimum lot sizes, restrictions on multiple-unit dwellings, and restrictive building codes...One social cost if these policies is a reduction in housing opportunities for low- and middle-income families"<ref></ref>
== Louisiana ==
[[Billy Nungesser]], the [[lieutenant governor of Louisiana]], proposed in 2017 that public–private partnerships be established for many of his state's financially-strapped state parks, which fall under his jurisdiction, particularly citing two popular facilities in [[Sabine Parish, Louisiana|Sabine Parish]]: [[North Toledo Bend State Park]] and [[Hodges Gardens State Park]], at which operating costs vastly outstrip revenues from the $1 park admission fees. Because of recurring state financial issues, the fate of state parks in Louisiana remain in doubt after July 1, 2017.<ref></ref>
== Massachusetts ==
In Massachusetts, arrangements to allow the state Department of Conservation and Recreation to pave over gravel utility roads under high-voltage transmission lines<ref></ref> operated by utilities have been branded by the Baker Administration and Eversource Energy as "public-private partnerships" to create alternative transportation corridors. This particular arrangement involves no financial risk to the for-profit utility. Where the utility has existing easements, they share the right-of-way. Where the utility does not have an existing easement but wishes to gain state approval for constructing new transmission lines on state property, the utility reproduces designs of rail trails in its petition to the state Energy Facilities Siting Board (EFSB). Approval would enable the utility to have construction of transmission lines and gravel utility paths fully funded through electric ratepayer bills. "Piggybacking" onto an electric 'reliability' project leverages the rights of the for-profit 'public utility' to overcome environmental and zoning bylaws which a rail trail might otherwise be subject to. The legality of steering greenfield transmission projects into environmentally sensitive conservation and wetlands, and using electric ratepayer funds for non-reliability purposes is being tested. In a related case, the Massachusetts Supreme Judicial Court ruled that electricity customers can no longer be asked to help cover the costs of building gas pipelines.
== New York ==
In New York, during the [[Robert Moses]] era, public-private partnership was frequent PPPs during this period were best described and known as ''public authorities''; for example, the [[Triborough Bridge and Tunnel Authority]], Henry Hudson Parkway Authority, and the [[Port Authority of New York and New Jersey]]. Moses manipulated various public authorities, either seeking their success of failure, in order to gain political power<ref></ref> More recently, the new [[Tappan Zee Bridge (2017–present)|Tappan Zee Bridge]] and the [[Javits Center]] are considered public-private partnerships.<ref></ref>
== Texas ==
In 2017, the State of [[Texas]] sought its first ever private partner to join in a project to renovate the G. J. Sutton Building in [[Downtown San Antonio]] near the [[Alamodome]], according to Mike Novak, the chairman of the [[Texas Facilities Commission]]. Local governments in Texas have already entered into such partnerships including the redevelopment of the [[HemisFair Arena]] and the construction by Weston Urban of a new [[Frost Bank Tower (San Antonio)|Frost Bank Tower]] in San Antonio. Named for [[G. J. Sutton]], the first [[African-American]] elected official in San Antonio, the six-acre complex was vacated by the state in 2014 because of [[bat]] infestation and a deteriorating foundation. In 2015, [[Governor of Texas|Governor]] [[Greg Abbott]], counter to the wishes of [[List of mayors of San Antonio|Mayor]] [[Ivy Taylor]], used his [[line-item veto]] to remove $132 million which would have funded the rehabilitation of The Sutton. The state expects to see the property used at some point in the future for office space and parking slots.<ref>Richard Webner,
"State seeking builder for Sutton rehab", ''[[San Antonio Express-News]]'', April 15, 2017, p. B1.</ref>
== West Coast Infrastructure Exchange ==
The [[West Coast Infrastructure Exchange (WCX)]], a State/Provincial Government-level partnership between [[California]], [[Oregon]], [[Washington (state)|Washington]], and [[British Columbia]] that was launched in 2012, conducts business case evaluations for selected infrastructure projects and connects private investment with public infrastructure opportunities. The platform aims to replace traditional approaches to infrastructure financing and development with "performance-based infrastructure" marked by projects that are funded where possible by [[Internal rate of return|internal rates of return]], as opposed to tax dollars, and evaluated according to [[Life-cycle assessment|life-cycle]] social, ecological and economic impacts, as opposed to [[Productive capacity|capacity]] addition and [[capital cost]].<ref></ref>
== References ==
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