As opportunities grow for public-private partnership procurement, political risk is the main threat to P3 projects. To sustain and grow the P3 market, the benefits will have to be communicated to elected officials and the public.

Recently, InfraAmerica held its annual US P3 Forum. Here’s a summary of the event’s key take-aways, as reported by The National Council for Public-Private Partnerships:

Political Risks

The Forum identified political risk as the biggest challenge to P3 projects, even more so than construction risk. Public opposition can slow down or derail P3 projects. In addition, up to 40 percent of mayors and governors were recently elected, and none made infrastructure an election priority. Some have inherited P3 projects; but to most, P3s are not a priority. Communication of how P3s can improve the lives of elected officials and the public will be imperative to lessen the political risk.

Opportunities

According to Kome Ajise, the chief deputy officer of the California State Department of Transportation, Caltrans is exploring significant P3 opportunities in the Los Angeles basin, including the SR-710 North Tunnel Extension, the I-710 South Freight Corridor, and the High Desert Corridor. Also, more north, there are possible P3 projects, including the Route 152 Trade Corridor in Santa Clara County and the Route 156 widening project in Monterey County.

Going Forward

The Forum concluded that there is opportunity in the P3 market to help solve America’s deteriorating infrastructure. However, the public and elected officials need to be more educated about the benefits of P3s to grow this evolving market.