Public-private partnerships (PPP or P3) are cooperative arrangements between two or more
public
In public relations and communication science, publics are groups of individual people, and the public (a.k.a. the general public) is the totality of such groupings. This is a different concept to the sociological concept of the ''Öffentlichkei ...
and
private sectors
The private sector is the part of the economy, sometimes referred to as the citizen sector, which is owned by private groups, usually as a means of establishment for profit or non profit, rather than being owned by the government.
Employment
The ...
, typically of a long-term nature.
[Hodge, G. A and Greve, C. (2007), Public–Private Partnerships: An International Performance Review, Public Administration Review, 2007, Vol. 67(3), pp. 545–558] In the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
, they mostly took the form of
toll roads concessions,
community post offices and urban renewal projects.
[David T. Beito and Linda Royster Beit]
''"Rival Road Builders: Private Toll Roads in Nevada, 1852–1880,*''
Nevada Historical Society Quarterly 41 (Summer 1998), 71–91. In recent years, there has been interest in expanding P3s to multiple infrastructure projects, such as schools, universities, government buildings, waste and water. Reasons for expanding public-private partnership in the United States were initially cost-cutting and concerns about Public debt. In the early 2000s, P3s were implemented sporadically by different
States and municipalities with little federal guidance. During
Obama's second term, multiple policies were adopted to facilitate P3 projects, and
Congress
A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of a ...
passed bills in that direction with overwhelming
bipartisan
Bipartisanship, sometimes referred to as nonpartisanship, is a political situation, usually in the context of a two-party system (especially those of the United States and some other western countries), in which opposing political parties find co ...
support.
My Brother's Keeper Challenge
My Brother's Keeper Challenge is a public–private partnership of the United States federal government which promotes intervention by civic leaders in the lives of young men of color. The program was initiated in 2014 with sponsorship of the Whit ...
is an example of a public–private partnership.
Some Private-public partnerships were carried out without incident, while others have attracted much controversy.
Origins
Public-private partnerships in America have existed in one form of another since the beginning of the
colonial period, as
colonial charters were based on a partnership between the British Crown and a company responsible for colonisation. Much of the early infrastructure of the United States was built by what can be considered public-private partnerships. This includes the Philadelphia and Lancaster Turnpike road in Pennsylvania, which was initiated in 1792, an early steamboat line between
New York and New Jersey in 1808; many of the railroads, including the nation's
first railroad, chartered in New Jersey in 1815; and most of the modern
electric grid
An electrical grid is an interconnected network for electricity delivery from producers to consumers. Electrical grids vary in size and can cover whole countries or continents. It consists of:Kaplan, S. M. (2009). Smart Grid. Electrical Power ...
. In the mid to late nineteenth century,
toll roads concessions were first introduced in the United States, and this became a prevalent form of P3s in the country during the 20th century.
P3s in the United States are also "traditionally associated with urban renewal and downtown economic development".
[Hodge, G. A and Greve, C. (2007), Public–Private Partnerships: An International Performance Review, Public Administration Review, 2007, Vol. 67(3), pp. 545–558]
The prevalence of Public-Private Partnerships in public infrastructure increased around the world during the 1990s and 2000s. This was particularly the case in countries such as the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
,
Canada
Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...
and
Australia
Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
, with strong encouragements from their national governments. The United States did not take part of this worldwide trend partly because the federal and States government traditionally had a small role in these areas, with public infrastructure projects being mostly funded through a well-functioning municipal bonds system.
However, the United States became friendlier to P3s during Obama's second term, with the adoption of the ''Fixing America's Surface Transportation Act (FAST)'' and the ''Water Infrastructure Finance and Innovation Act (WIFIA)'' by Congress. The
Department of Transportation also created the ''Build America Transportation Investment Center (BATIC'') to help P3s access federal credit and facilitate their implementation.
Motivations
Pressure to sign Asset Montization P3 deals and to change the standard funding model for infrastructure projects arise from concerns about the level of
public debt
A country's gross government debt (also called public debt, or sovereign debt) is the financial liabilities of the government sector. Changes in government debt over time reflect primarily borrowing due to past government deficits. A deficit oc ...
.
U.S. city managers' motivations for exploring P3s vary. According to a 2007 survey, two primary reasons were expressed: cost reduction (86.7%) and external fiscal pressures, including tax restrictions (50.3%). No other motivations expressed exceeded 16%. In the 2012 survey, however, interest had shifted to the need for better processes (69%), relationship building (77%), better outcomes (81%), leveraging resources (84%), and belief that P3s are "the right thing to do" (86%)." Among those surveyed, the provision of public services through contracts with private firms peaked in 1977, at 18%, and has declined since. The most common form of shared service delivery now involves contracts between governments, growing from 17% in 2002 to 20% in 2007. "At the same time, approximately 22% of the local governments in the survey indicated that they had brought back in-house at least one service that they had previously provided through some alternative private arrangement.
There has been proposals to reform
social security
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...
and emergency services in the United States by transforming them into public-private partnerships to ensure their continued funding.
Asset Monetization
A form of P3 that became prevalent in American cities during the 21st century are ''asset monetization'' arrangements. They concerns a city's revenue-generating assets (Parking lots, garage and meters, public lights, toll roads, ect.) and transforms them into financial assets that the city can lease to a private corporation in exchange for operation and maintenance. These deals are usually done during periods of financial distress for the city, and the immediate revenues municipalities receive in these deals is used to pay down the debt or to fill budget holes. The 2014
Detroit bankruptcy
The city of Detroit, Michigan, filed for Chapter 9 bankruptcy on July 18, 2013. It is the largest municipal bankruptcy filing in U.S. history by debt, estimated at $18–20 billion, exceeding Jefferson County, Alabama's $4-billion filing in 201 ...
deal included many of such Asset Monetization arrangements.
Social impact bonds
Social impact bonds
A social impact bond, also known as pay-for-success financing, pay-for-success bond, social benefit bond or simply a social bond, is one form of outcomes-based contracting. Although there is no single agreed definition of social impact bonds, mo ...
(also called ''Pay for Success'' bonds) are "a
public-private partnership which funds effective social services through a performance-based contract." They operate over a fixed period of time, but they do not offer a fixed rate of return. Repayment to investors is contingent upon specified social outcomes being achieved.
[http://www.socialfinance.org.uk/downloads/SIB_report_web.pdf]
Social impact bonds have generated a particularly large amount of interest in the United States. In February 2011,
Barack Obama
Barack Hussein Obama II ( ; born August 4, 1961) is an American politician who served as the 44th president of the United States from 2009 to 2017. A member of the Democratic Party, Obama was the first African-American president of the U ...
's proposed 2012 budget stated that up to $100m would be freed up to run social impact bond pilot schemes..
In August, 2012, Massachusetts became the first state in the nation to create a policy to encourage the creation of Social impact bonds, which they call "social innovation financing". The state legislature authorised spending up to $50 million on the initiatives.
The
U.S. Department of Justice
The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United State ...
gave "Priority Consideration" to Fiscal Year 2012 Second Chance Act grant applications that include a Pay for Success component. The Second Chance Act (P.L. 110-199) authorizes federal grants to support services that help reduce recidivism. In 2013, the
U.S. Department of Labor
The United States Department of Labor (DOL) is one of the executive departments of the U.S. federal government. It is responsible for the administration of federal laws governing occupational safety and health, wage and hour standards, unemploym ...
awarded nearly $24 million in grants for Pay for Success projects that provide employment services to formerly incarcerated individuals in order to increase employment and reduce recidivism.
The
U.S. Department of Housing and Urban Development
The United States Department of Housing and Urban Development (HUD) is one of the executive departments of the U.S. federal government. It administers federal housing and urban development laws. It is headed by the Secretary of Housing and Urb ...
(HUD) announced in 2013 it will provide $5 billion in grant dollars to assist in the rebuilding and strengthening effort following Hurricane Sandy and encouraged the five states impacted by the storm to make use of ''Pay for Success'' strategies where appropriate.
In 2013, the Department of the Treasury issued a Request for Information (RFI) that will help design a proposed $300 million Incentive Fund to further expand ''Pay for Success''. The Fund is intended to encourage cities, states and nonprofits to test new ''Pay for Success'' models. This same Fund was also part of the President's commitment of nearly $500 million in the
2013 Budget to expand ''Pay for Success'' strategies.
California
The
California Fuel Cell Partnership (CaFCP) is a public-private partnership to promote hydrogen vehicles (including cars and buses) in California. It is notable as one of the first initiatives for that purpose undertaken in the United States. The challenge is which come first, hydrogen cars or filling stations.
San Diego has entered into numerous PPP agreements. "San Diego has used P3s more extensively and, with
Petco Park
Petco Park is a baseball stadium in Downtown San Diego, California. It is the home ballpark of Major League Baseball's San Diego Padres, and has also been used as a venue for concerts, soccer, golf, and rugby.
The ballpark is located between Se ...
, on a larger scale than is typical of cities elsewhere".
One explanation for San Diego's propensity towards P3 agreements is "...local residents refuse to tax themselves to pay for public benefits and prefer private-sector actors to take the lead...".
"...tax shares are usually linear functions of property values..., jurisdictions have an incentive to try to exclude those who would have below-average property values. The incentive leads to such local policies as minimum lot sizes, restrictions on multiple-unit dwellings, and restrictive building codes...One social cost if these policies is a reduction in housing opportunities for low- and middle-income families"
In April 2013,
Social Finance US
Social Finance is a not for profit consultancy organisation that partners with governments, service providers, the voluntary sector and the financial community to find better ways of tackling social problems in the UK and globally. Founded in 2 ...
and Collective Health launched an
asthma
Asthma is a long-term inflammatory disease of the airways of the lungs. It is characterized by variable and recurring symptoms, reversible airflow obstruction, and easily triggered bronchospasms. Symptoms include episodes of wheezing, cou ...
management demonstration project in
Fresno, California
Fresno () is a major city in the San Joaquin Valley of California, United States. It is the county seat of Fresno County and the largest city in the greater Central Valley region. It covers about and had a population of 542,107 in 2020, makin ...
. Fresno is one of the nation's asthma hot spots; around 20 percent of its children have been diagnosed with the disease, which takes an especially heavy toll among poor communities. Two service providers Central California Asthma Collaborative and Clinica Sierra Vista, will work with the families of 200 low-income children with asthma to provide home care, education, and support in reducing environmental triggers ranging from cigarette smoke to dust mites.
Illinois
Facing a budget crisis in 2005, the city of
Chicago
(''City in a Garden''); I Will
, image_map =
, map_caption = Interactive Map of Chicago
, coordinates =
, coordinates_footnotes =
, subdivision_type = Country
, subdivision_name ...
entered multiple infrastructure asset monetization P3 deals. These deals were signed with multinational institutional investors and carried out in haste, with final deals being struck days after the start of negotiations. Subsequent municipal Inspector general's reports on the Parking concessions found the City significantly underpriced the value of these assets in these deals.
On 5 May 2014, the State of Illinois announced the state's first Pay for Success (PFS) contract will increase support for at-risk youth who are involved in both the child welfare and juvenile justice systems in Illinois. The first contract awarded under this innovative initiative will go to One Hope United, in partnership with the Conscience Community Network (CCN).
Louisiana
Billy Nungesser
William Harold Nungesser (born January 10, 1959) is an American politician serving as the 54th lieutenant governor of Louisiana.
A Republican, Nungesser is also the former president of the Plaquemines Parish Commission, having been re-elected to ...
, the
lieutenant governor of Louisiana
The lieutenant governor of Louisiana (french: Lieutenant-Gouverneur de la Louisiane) is the second highest state office in Louisiana. The current lieutenant governor is Billy Nungesser, a Republican Party (United States), Republican. The lieuten ...
, proposed in 2017 that public–private partnerships be established for many of his state's financially strapped state parks, which fall under his jurisdiction, particularly citing two popular facilities in
Sabine Parish
Sabine Parish ( French: ''Paroisse de la Sabine'') is a parish located in the U.S. state of Louisiana. As of the 2010 census, the population was 24,233. The seat of the parish is Many.
Sabine was one of five parishes created in as many week ...
:
North Toledo Bend State Park
North Toledo Bend State Park is one of two Louisiana State Parks located on the shores of Toledo Bend Reservoir. The park, which is over in size, is located west of the town of Zwolle, Louisiana at the end of La. Hwy. 3229.
Activities
Like mo ...
and
Hodges Gardens State Park, at which operating costs vastly outstrip revenues from the $1 park admission fees. Because of recurring state financial issues, the fate of state parks in Louisiana remain in doubt after July 1, 2017.
Massachusetts
In
, arrangements to allow the state Department of Conservation and Recreation to pave over gravel utility roads under high-voltage transmission lines operated by utilities have been branded by the Baker Administration and Eversource Energy as "public-private partnerships" to create alternative transportation corridors. This particular arrangement involves no financial risk to the for-profit utility. Where the utility has existing easements, they share the right-of-way. Where the utility does not have an existing easement but wishes to gain state approval for constructing new transmission lines on state property, the utility reproduces designs of rail trails in its petition to the state Energy Facilities Siting Board (EFSB). Approval would enable the utility to have construction of transmission lines and gravel utility paths fully funded through electric ratepayer bills. "Piggybacking" onto an electric 'reliability' project leverages the rights of the for-profit 'public utility' to overcome environmental and zoning bylaws which a rail trail might otherwise be subject to. The legality of steering greenfield transmission projects into environmentally sensitive conservation and wetlands, and using electric ratepayer funds for non-reliability purposes is being tested. In a related case, the
Massachusetts Supreme Judicial Court
The Massachusetts Supreme Judicial Court (SJC) is the court of last resort, highest court in the Commonwealth (U.S. state), Commonwealth of Massachusetts. Although the claim is disputed by the Supreme Court of Pennsylvania, the SJC claims the di ...
ruled that electricity customers can no longer be asked to help cover the costs of building gas pipelines.
On 1 August 2012, the Commonwealth of Massachusetts announced that
Third Sector Capital Partners Third Sector Capital Partners, Inc. is a nonprofit advisory firm with offices in Boston, Massachusetts, San Francisco, California, and Washington, DC. Founded in 2011, Third Sector leads governments, nonprofits, and private funders in building evid ...
will serve as lead intermediary, in partnership with New Profit Inc., for the youth recidivism initiative. Roca, United Way of Massachusetts Bay and Merrimack Valley, and Youth Options Unlimited will also participate in the youth recidivism project. The program, called Social Innovation Financing, operates on a simple "pay for success" model, in which nonprofits must demonstrate that by keeping youth from being reincarcerated.
According to the state's press release, the juvenile justice contract "will be designed with the specific goal of reducing recidivism and improving education and employment outcomes over several years for a significant segment of the more than 750 youth who exit the juvenile justice system, and the several thousand who exit the probation system annually."
In the second of two pilots launched by Massachusetts in 2012,
Third Sector Capital Partners Third Sector Capital Partners, Inc. is a nonprofit advisory firm with offices in Boston, Massachusetts, San Francisco, California, and Washington, DC. Founded in 2011, Third Sector leads governments, nonprofits, and private funders in building evid ...
joined with the Massachusetts Housing and Shelter Alliance (MHSA), lead intermediary for a chronic homelessness project, as well as the Corporation for Supportive Housing and United Way.
The Massachusetts Housing and Shelter Alliance represents nonprofit housing organizations that provide housing and support services, such as medical care and vocational training. The consortium' goal was to raise the number of housing units it provides to around 600 from 220.
Michigan
Following its
bankruptcy
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...
,
Detroit
Detroit ( , ; , ) is the largest city in the U.S. state of Michigan. It is also the largest U.S. city on the United States–Canada border, and the seat of government of Wayne County. The City of Detroit had a population of 639,111 at th ...
was compelled to sign Asset Monetization arrangements with its creditors. In September 2014, the City came to terms with bond insurer Syncora on its $400 million claim; Syncora would receive a 20-year lease extension on their P3 operation of the
Detroit-Windsor Tunnel and 30-year lease of the underground garage at Grand Circus Park.
On October 16, 2014, lawyers for the city of Detroit and
Financial Guaranty Insurance Company
Financial Guaranty Insurance Company (FGIC) is an American monoline bond insurer established in 1983. It faced significant financial difficulties in 2008 which affected its ability to write new business.
The firm was acquired in December 2003 ...
(FGIC), a bond insurer with a $1 billion claim, disclosed in court that they had reached a deal to settle the company's claims. Under the deal, the city and state would pay for the demolition of the city-owned
Joe Louis Arena
Joe Louis Arena was an arena in Downtown Detroit. Completed in 1979 at a cost of US$57 million as a replacement for Olympia Stadium, it sat adjacent to TCF Center, Cobo Center on the bank of the Detroit River and was accessible by the Joe Lou ...
once the Red Wings move into the new arena. After demolition, FGIC would receive the arena site and an adjacent parking lot, giving the company nearly 9 acres (3.6 ha) for redevelopment and $152 Million in city notes, partly paid through public parking revenues.
New York
![Mario_Cuomo_Bridge_Overhead](https://upload.wikimedia.org/wikipedia/commons/3/3a/Mario_Cuomo_Bridge_Overhead.jpg)
In New York, during the
Robert Moses
Robert Moses (December 18, 1888 – July 29, 1981) was an American urban planner and public official who worked in the New York metropolitan area during the early to mid 20th century. Despite never being elected to any office, Moses is regarded ...
era, public-private partnership was frequent PPPs during this period were best described and known as ''public authorities''; for example, the
Triborough Bridge and Tunnel Authority
The Triborough Bridge and Tunnel Authority (TBTA), doing business as MTA Bridges and Tunnels, is an affiliate agency of the Metropolitan Transportation Authority that operates seven toll bridges and two tunnels in New York City. In terms of traf ...
, Henry Hudson Parkway Authority, and the
Port Authority of New York and New Jersey
The Port Authority of New York and New Jersey, PANYNJ; stylized, in logo since 2020, as Port Authority NY NJ, is a joint venture between the U.S. states of New York and New Jersey, established in 1921 through an interstate compact authorized ...
. Moses manipulated various public authorities, either seeking their success of failure, in order to gain political power More recently, the new
Tappan Zee Bridge and the
Javits Center
The Jacob K. Javits Convention Center, commonly known as the Javits Center, is a large convention center on Eleventh Avenue between 34th Street and 38th Street in Hell's Kitchen, Manhattan, New York City. It was designed by architect James I ...
are considered public-private partnerships.
In February 2012, the
City of New York
New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the most densely populated major city in the Un ...
issued a $9.6 million social bond for prisoner rehabilitation to be run by
The Osborne Association
''The'' () is a grammatical article in English, denoting persons or things already mentioned, under discussion, implied or otherwise presumed familiar to listeners, readers, or speakers. It is the definite article in English. ''The'' is the m ...
with support from
Friends of Island Academy
''Friends'' is an American television sitcom created by David Crane and Marta Kauffman, which aired on NBC from September 22, 1994, to May 6, 2004, lasting ten seasons. With an ensemble cast starring Jennifer Aniston, Courteney Cox, Lisa ...
.
Goldman Sachs bought the bond and will profit if recidivism decreases.
While the City of New York didn't actually issue bonds or put up-front capital for
MDRC MDRC is a nonprofit, nonpartisan education and social policy research organization based in New York City; Washington, DC; and Oakland and Los Angeles, California.
History
In 1974, the Ford Foundation and six government agencies together create ...
to run the program (this was done by
Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...
directly with
MDRC MDRC is a nonprofit, nonpartisan education and social policy research organization based in New York City; Washington, DC; and Oakland and Los Angeles, California.
History
In 1974, the Ford Foundation and six government agencies together create ...
), the City may be liable for some amount if the program is successful. An independent evaluation, performed by the
Vera Institute of Justice
The Vera Institute of Justice, founded in 1961, is an independent nonprofit national research and policy organization in the United States. Based primarily in New York City, Vera also has offices in Washington, DC, and describes its goal as "to t ...
, found the goal of reducing teenage recidivism by ten percent had not been met, at all, and the city paid nothing to Goldman Sachs.
In mid-2012, the
New York State Department of Labor
The New York State Department of Labor (DOL or NYSDOL) is the department of the New York state government that enforces labor law and administers unemployment benefits.
The mission of the New York State Department of Labor is to protect workers ...
(DOL) selected
Social Finance US
Social Finance is a not for profit consultancy organisation that partners with governments, service providers, the voluntary sector and the financial community to find better ways of tackling social problems in the UK and globally. Founded in 2 ...
as its Intermediary partner in structuring an application for federal funding for a Social Impact Bond. In 2013, New York approved $30 million in its budget to support Social impact bonds over the subsequent five years. In September 2013, New York State received a $12 million grant from the United States Department of Labor (USDOL) to fund a Pay for Success project designed to increase employment and reduce recidivism among 2,000 formerly incarcerated individuals in partnership with Social Finance US and the
Center for Employment Opportunities
Center or centre may refer to:
Mathematics
*Center (geometry), the middle of an object
* Center (algebra), used in various contexts
** Center (group theory)
** Center (ring theory)
* Graph center, the set of all vertices of minimum eccentrici ...
. This was the largest grant awarded by USDOL for Pay for Success projects.
Texas
In 2017, the State of
Texas
Texas (, ; Spanish language, Spanish: ''Texas'', ''Tejas'') is a state in the South Central United States, South Central region of the United States. At 268,596 square miles (695,662 km2), and with more than 29.1 million residents in 2 ...
sought its first ever private partner to join in a project to renovate the G. J. Sutton Building in
Downtown San Antonio
Downtown San Antonio is the central business district of San Antonio, Texas, United States. It also serves as the urban core of Greater San Antonio, a metropolitan area with nearly 2.5 million people.
In addition to being encircled by Loops 1604 ...
near the
Alamodome
The Alamodome is a 64,000-seat domed indoor multi-purpose stadium in San Antonio, Texas. It is located on the southeastern fringe of downtown San Antonio. The facility opened on May 15, 1993, having been constructed at a cost of $186 milli ...
, according to Mike Novak, the chairman of the
Texas Facilities Commission. Local governments in Texas have already entered into such partnerships including the redevelopment of the
HemisFair Arena
HemisFair Arena (also known as the San Antonio Convention Center Arena) was an indoor arena located in San Antonio, Texas. It was home to the ABA/NBA's San Antonio Spurs from 1973 to 1993 and the San Antonio Force of the AFL during the 1992 seas ...
and the construction by Weston Urban of a new
Frost Bank Tower
The Frost Bank Tower is a skyscraper in Austin, Texas, United States. Standing 515 feet (157 m) tall with 33 floors, it is the fifth tallest building in Austin, behind The Independent, The Austonian, Fairmont Austin, and the 360 Co ...
in San Antonio. Named for
G. J. Sutton, the first
African-American
African Americans (also referred to as Black Americans and Afro-Americans) are an Race and ethnicity in the United States, ethnic group consisting of Americans with partial or total ancestry from sub-Saharan Africa. The term "African American ...
elected official in San Antonio, the six-acre complex was vacated by the state in 2014 because of
bat
Bats are mammals of the order Chiroptera.''cheir'', "hand" and πτερόν''pteron'', "wing". With their forelimbs adapted as wings, they are the only mammals capable of true and sustained flight. Bats are more agile in flight than most bi ...
infestation and a deteriorating foundation. In 2015,
Governor
A governor is an administrative leader and head of a polity or political region, ranking under the head of state and in some cases, such as governors-general, as the head of state's official representative. Depending on the type of political ...
Greg Abbott
Gregory Wayne Abbott (born November 13, 1957) is an American politician, attorney, and former jurist serving as the 48th governor of Texas since 2015. A member of the Republican Party (United States), Republican Party, he served as the 50th Tex ...
, counter to the wishes of
Mayor
In many countries, a mayor is the highest-ranking official in a municipal government such as that of a city or a town. Worldwide, there is a wide variance in local laws and customs regarding the powers and responsibilities of a mayor as well a ...
Ivy Taylor
Ivy Ruth Taylor (born June 17, 1970) is the president of Rust College in Holly Springs, Mississippi, and the former Mayor of San Antonio, Texas, from 2014 through 2017. The former politician and urban planner was a nonpartisan officeholder, alt ...
, used his
line-item veto
The line-item veto, also called the partial veto, is a special form of veto power that authorizes a chief executive to reject particular provisions of a bill enacted by a legislature without vetoing the entire bill. Many countries have different ...
to remove $132 million which would have funded the rehabilitation of The Sutton. The state expects to see the property used at some point in the future for office space and parking slots.
Utah
In August 2013, the
Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...
Urban Investment Group (UIG) together with the United Way of Salt Lake and J.B. Pritzker formed a partnership to create the first ever Social Impact Bond designed to finance early childhood. Goldman Sachs and Pritzker jointly committed up to $7 million to finance The Utah High Quality Preschool Program, a high impact and targeted curriculum focused on increasing school readiness and academic performance among at-risk 3- and 4-year-olds in Utah.
West Coast Infrastructure Exchange
The
West Coast Infrastructure Exchange (WCX)
The West Coast Infrastructure Exchange (WCX), a State/Provincial Government-level partnership between California, Oregon, Washington, and British Columbia that was launched in 2012, conducts business case evaluations for selected infrastructure pro ...
, a State/Provincial Government-level partnership between
California
California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
,
Oregon
Oregon () is a U.S. state, state in the Pacific Northwest region of the Western United States. The Columbia River delineates much of Oregon's northern boundary with Washington (state), Washington, while the Snake River delineates much of it ...
,
Washington
Washington commonly refers to:
* Washington (state), United States
* Washington, D.C., the capital of the United States
** A metonym for the federal government of the United States
** Washington metropolitan area, the metropolitan area centered o ...
, and
British Columbia
British Columbia (commonly abbreviated as BC) is the westernmost province of Canada, situated between the Pacific Ocean and the Rocky Mountains. It has a diverse geography, with rugged landscapes that include rocky coastlines, sandy beaches, ...
that was launched in 2012, conducts business case evaluations for selected infrastructure projects and connects private investment with public infrastructure opportunities. The platform aims to replace traditional approaches to infrastructure financing and development with "performance-based infrastructure" marked by projects that are funded where possible by
internal rates of return, as opposed to tax dollars, and evaluated according to
life-cycle social, ecological and economic impacts, as opposed to
capacity addition and
capital cost
Capital costs are fixed, one-time expenses incurred on the purchase of land, buildings, construction, and equipment used in the production of goods or in the rendering of services. In other words, it is the total cost needed to bring a project to a ...
.
Global Development Alliances
Global Development Alliances Global Development Alliances (GDA) is a program of the United States Agency for International Development (USAID). It was created in May 2001 as a new way for the U.S government to provide aid to developing countries through public-private partne ...
is a program of the
United States Agency for International Development
The United States Agency for International Development (USAID) is an independent agency of the U.S. federal government that is primarily responsible for administering civilian foreign aid and development assistance. With a budget of over $27 bi ...
(USAID). It was created in May 2001 as a new way for the
U.S government to provide aid to
developing countries
A developing country is a sovereign state with a lesser developed industrial base and a lower Human Development Index (HDI) relative to other countries. However, this definition is not universally agreed upon. There is also no clear agreem ...
through
public-private partnerships. From 2001 to 2016, USAID formed 1500 of such partnerships with over 3 500 private sector organisations. The goal of these partnerships are to provide market-based solutions to problems faced by developing countries as identified by USAID.
See also
*
Private finance initiative
The private finance initiative (PFI) was a United Kingdom government procurement policy aimed at creating "public–private partnerships" (PPPs) where private firms are contracted to complete and manage public projects. Initially launched in 199 ...
*
Public-private partnerships by country
Australia
A number of Australian state governments have adopted systematic programmes based on the Private Finance Initiative. The first, and the model for most others, is Partnerships Victoria. While some PPP projects have proceeded smoothly, oth ...
*
Public-private partnerships in Canada
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Public-private partnerships in India
References
{{Public-private Partnership
Public–private partnership
Public–private partnership projects in the United States