About Public-Private Partnerships

There are many types of P3s. For roadway and bridge projects, P3s typically involve an up-front investment by a private partner who then designs, builds, finances, operates, and maintains the facility in exchange for future revenues generated by the facility. These revenues typically come from tolls paid by the users of the facility. In Arizona, P3s terms can last up to 50 years unless extended by ADOT.

On July 13, 2009, Governor Jan Brewer signed into law HB 2396, which allows the Arizona Department of Transportation to use public-private partnerships as a tool to address Arizona’s transportation requirements.  This new law grants the Department broad authority to partner with the private sector to build or improve Arizona transportation facilities.  The new authority gives ADOT additional methods to fund the construction and enhancement of roads, transit and other transportation facilities.

Although often thought of simply as “toll roads”, Public-Private Partnerships (PPPs, or P3s) actually allow for many options to fund and construct new and enhanced facilities.  With the passage of HB 2396, ADOT now has the legal authority to explore these options.

Over the next several months, the Department will be developing rules, policies, procedures and guidelines to provide guidance to potential public and private partners.     

As ADOT considers how to best utilize the new law, the agency is using the following principles for implementation: