Public-private partnerships (P3s) are going strong! In the August PM magazine article “Taking the P3 Route to Reinvent Downtown,” author Charles Renner, a partner with the law firm Husch Blackwell, Kansas City, Missouri, writes that “The past decade has seen a steady increase in the use of P3 structures, and 2016 was something of a watershed year with multiple high-profile projects coming online that address a variety of public needs.”

One of the projects described in the article is a $1 billion water infrastructure project servicing San Antonio, Texas, which is the location of ICMA’s 2017 Annual Conference in October. Two other case studies feature Lincoln, Nebraska, and Sioux Falls, South Dakota.

In the case of P3s, Renner explains that there are three generally applicable considerations that managers can keep in mind to lay the foundation for successful P3 projects:

1. There has to be an appreciation for the complexity of P3 deals. They can be complicated and involve multifaceted financing, long-term contractual relationships, and merging of public- and private-sector interests.
2. Identifying quality private partners can make or break a project. The relationships on which P3 projects depend will necessarily span many years; therefore, public-sector participants need to carefully develop criteria for evaluating potential partners that take proper account of the timeline and challenges associated with projects.
3. The role of policymakers in the P3 delivery model cannot be understated. Successful P3 projects almost always enjoy the sustained presence of political champions at each relevant level of government. Specifically, it is wise to ensure that there is state-level statutory authority expressly permitting the type of undertaking being sought, along with a locally-approved procurement process that includes strong elements of transparency and local-leadership affirmation.

Find out more specifics on the P3 combo in the August article.