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                                                                          Public-Private Partnerships (P3s) in Transportation 
Contents 
Introduction  1 
Types of P3s 1 
P3 Implementation 3 
Benefits of P3s 4 
Limitations of P3s  5 
Federal Role in P3s  6 
      Transportation Infrastructure Finance and Innovation Act (TIFIA) Program 6 
      Private Activity Bonds and Tax Issues 8 
      State Infrastructure Banks  8 
      Build America Bureau  10 
Policy Issues and Options  10 
      Protecting the Public Interest  10 
           Evaluation  11 
           Transparency  11 
      Asset Recycling  12 
      Incentive Grants  12 
      Infrastructure Banks  13 
      Equity Investment Tax Credits  13 
      Private Activity Bonds  14 
      Changes to TIFIA Program  14 
      P3s and Interstate Highway Tolls  15 
Figures 
Figure 1. Relationships Between Partners in a DBFOM Toll Road P3 Project 2 
  
Tables 
Table 1. Possible Allocation  of Risks Between Public and Private Partners  
   in Transportation Projects  5 
  
Contacts 
Author Information  15 
Congressional Research Service 
                                                              Public-Private Partnerships (P3s) in Transportation 
Introduction 
Growing demands on the transportation system and constraints on public resources have led to  
calls for more private-sector involvement in the provision of transportation infrastructure through  
what are known as “public -private partnerships ” or “P3s.” As defined by the U.S. Department of  
Transportation (DOT), “public -private partnerships (P3s) are contractual agreements between a  
public agency and a private-sector entity that allow for greater private-sector participation in the  
                                           1 
delivery of transportation projects.”  Typically, the “public ” in public-private partnerships refers  
to a state government, local government, or transit agency. The federal government exerts  
influence over the prevalence 
                
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