Public-private partnerships (P3s) are contractual agreements formed between a public agency and a private sector entity that allow for greater private sector participation in the delivery and financing of transportation projects.
House Bill 114 allows the Ohio Department of Transportation to enter agreements with private entities to develop, finance, maintain, and operate transportation infrastructure.
ODOT can solicit proposals for transportation projects from private entities, and private entities can also submit proposals for unsolicited projects.
Expanding the private sector role allows ODOT to utilize private sector technical, management and financial resources in new ways to achieve certain public agency objectives such as greater cost and schedule certainty, supplementing in-house staff, innovative technology applications, specialized expertise or access to private capital.
ODOT will use P3s to advance projects that previously would likely be beyond the Department’s ability to pursue through traditional project delivery methods due to magnitude and associated costs. P3 creates a framework that makes these projects possible, accelerates their delivery and brings additional transportation options to the traveling public.
P3s provide benefits by allocating the responsibilities to the party - either public or private - that is best positioned to control the activity that will produce the desired result. With P3s, this is accomplished by specifying the roles, risks and rewards contractually, so as to provide incentives for maximum performance and the flexibility necessary to achieve the desired results.
The primary benefits of using P3s to deliver transportation projects include:
- Expedited completion compared to conventional project delivery methods
- Project cost savings
- Improved quality and system performance from the use of innovative materials and management techniques
- Substitution of private resources and personnel for constrained public resources
- Access to new sources of private capital