DALLAS (Dallas Business Journal) – A growing number of government entities in Texas are engaging in private- and public-sector partnerships — also known as a P3 — to finance construction projects.
Under a P3, the private group provides financing, design, development, construction, operation and/or maintenance of a public infrastructure project and is paid back over time, usually through tolls, designated revenues, cost savings or lease agreements.
Unlike with privatization, the public entity typically retains ownership of the project, oversees its operation and controls the private group’s involvement.
Texas has had several recent examples of P3 projects. Among them:
- The City of Cameron partnered with a company that will oversee the city’s water and wastewater treatment plants. The five-year partnership is valued at $4.7 million.
- The Katy Area Economic Development Corp. and Chamber of Commerce signed a P3 agreement with a private firm to open a new Workforce Solutions office in Katy Mills.
- A development firm helped Midwestern University in Wichita Falls build an on-campus residence by providing financing and construction management services.
