The advantages of that accrue to a city or municipality through the build-out of critical infrastructure in a public-private partnership (P3) are threefold, explains Michael Albrecht, a managing partner of Ridgewood Infrastructure, in an interview published in the June issue of Institutional Investing in Infrastructure (i3) about implementing P3 strategies for infrastructure projects.
“Cities that utilize a P3 approach benefit materially from transferring risk to the private sector,” Albrecht says. “The timing of the construction execution is another advantage that accrues to the public sector. Under most P3 arrangements, delays in achieving commercial operations result in steep penalties for the private sector partner…. Finally, in a P3, the private sector typically takes on the risks related to financing.”
To access a pdf of the interview,
