Navigating Public-Private Partnerships
Ten imperatives for evaluating, planning, and implementing P3s, and six higher education case studies
As higher education faces significant funding and maintenance challenges, institutions are increasingly leveraging public-private partnerships (P3s) to achieve their infrastructure goals.
Once viewed primarily as a means to secure additional funds for major capital projects, leaders increasingly use P3s to transfer the long-term risks of ownership, management, and maintenance, as well as to reap the benefits of private sector expertise.
Effective P3s can provide numerous benefits, such as expedited project delivery, access to private sector financing and expertise, and facility lifecycle maintenance.
Though the potential benefits of P3s are attractive, moving too quickly on a P3 deal can lead to major financial consequences. In many cases, problems arise when institutions fail to sufficiently evaluate the feasibility of a P3, secure buy-in from campus leaders, or establish necessary governance processes.
To help leaders avoid these pitfalls and better navigate public-private partnerships, this publication offers high-level guidance to successfully evaluate, plan, and execute a P3.
Ten imperatives to evaluate, plan, and implement a P3
This section details ten imperatives to help senior leaders evaluate, plan, and implement a P3 to build new campus facilities and infrastructure. The first three imperatives focus on evaluating the viability of a P3 and selecting the delivery method that best aligns with project objectives. The next three imperatives focus on establishing a team and governance processes that optimize two crucial aspects of a P3 deal: risk allocation and financing. The following three imperatives explore how to successfully implement a P3, from choosing the right private partner, designing a performance-based contract, and monitoring the project for the duration of the agreement.
P3 viability screening worksheet
This tool guides senior leaders through the first step of a more comprehensive evaluation process to determine a project’s P3 suitability. To use this tool effectively, leaders must possess a basic understanding of the scope, costs, risks, and revenue potential of the project under consideration.
Case studies of public-private partnerships in higher education
Read through six detailed case studies of universities’ P3 projects to learn how institutions have successfully leveraged P3s to achieve infrastructure goals.
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