Will private partners try to increase their profit at citizens’ expense by raising tolls and reducing service?

No. A toll facility is a business venture for a private partner. If tolls are too high, fewer people will travel on the facility, which will result in lower profits for the private entity.

Similarly, reducing service will also drive customers away, which is the last thing that a business wants to do.

Additionally, provisions regulating toll rate increases and performance standards are included in the P3 agreement, and the private partner is legally required to adhere to these provisions.

What types of project-delivery methods are allowed under a P3?

ADOT can use a variety of project delivery methods:

  • Predevelopment agreements leading to other implementing agreements
  • Design-build agreements
  • Design-build-maintain agreements
  • Design-build-finance-operate agreements
  • Design-build-operate-maintain agreements
  • Design-build-finance-operate-maintain agreements
  • A concession providing for the private partner to design, operate, maintain, manage or lease an eligible facility

What are the differences between a P3 and the way ADOT typically does a transportation project?

Under a conventional project-delivery method, ADOT finances both the design and construction of a transportation project. First, ADOT typically bids out and oversees the engineering design. Once the design is complete, ADOT then bids out and oversees the project's construction. Once the construction is complete, ADOT assumes the operations and maintenance of the facility. This process often results in change orders, which increase the cost of the project.

What are the key benefits of P3s, and how do P3s benefit Arizonans?

P3s make it possible to deliver much needed transportation projects in a timely manner, often years before the projects could be delivered using traditional project-delivery methods. Because P3s are business ventures for the private sector, the private sector has become efficient at delivering projects under this method. These efficiencies, combined with the private sector's resources, provide a more effective life-cycle cost and timely approach to delivering projects and provide a greater value for money for the public owner.