Programs and Partnerships

P3 Initiatives

A public-private partnership (P3) is just that: a partnership between a public agency and a private-sector entity (often called a "Concessionaire"). A P3 refers to the contractual agreement that allows the private sector entity to have greater participation in the delivery of a transportation project.

For the RFQ package for the South Mountain Freeway, go to Current Projects.
Using traditional project delivery methods, ADOT bears all of the risks and responsibilities for a project. Under a P3, the private partner takes on some or all of the project's risks and responsibilities.

For roadway and bridge projects, P3s typically involve an up-front investment by a private partner who then designs, builds, finances, operates and maintains the facility in exchange for future revenues generated by the facility. These revenues typically come from tolls paid by the users of the facility. In Arizona, P3s terms can last up to 50 years unless extended by ADOT.

Although often thought of simply as "toll roads," P3s actually allow for many options to finance and construct new and enhanced facilities. With the passage of HB 2396, ADOT now has the legal authority to explore these options.

That exploration led ADOT to initiate a first-ever P3 designed to acquire new facilities for the agency and free up prime land for local redevelopment. ADOT recently selected Vintage Partners, an Arizona-based development firm, as the developer that will relocate and consolidate the agency's offices in Flagstaff. This project will enable ADOT to move into new office space in Flagstaff, including new Motor Vehicle Division offices, at no cost to the department, in exchange for ADOT's existing property at 1801 S. Milton Rd. More information can be found here.

ADOT’s Office of P3 Initiatives hosted an Industry Forum concerning the development of the South Mountain Freeway. A link to the presentation and a list of the attendees is available on the P3 Projects tab in this section.

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