What It Is
Balfour Beatty Capital is a leader and long-term partner in the development of Public-Private Partnerships (PPPs) in the U.S. and abroad.
Public-Private Partnerships are an effective tool
A Public-Private Partnership is a system in which a private business venture or a government project is funded and operated through a partnership of government entity or agency and a private company. The system makes PPPs an innovative strategy for delivering up-to-date, high quality public infrastructure. PPPs give the public an opportunity to leverage its limited resources to obtain high quality essential assets.
Key benefits of public-private partnerships
Public-Private Partnerships have a long history in the U.S. and throughout the world in various forms and in a variety of public sector areas such as military housing, education, transportation, healthcare and infrastructure. Based on first-hand experience and knowledge, the public sector has considered PPPs an effective tool to use in leveraging its limited resources. Some of the key benefits of PPPs include the following:
- Fast-track project funding and delivery - lower all-in costs of construction/ development by avoiding inflationary increases in materials, labor and rising financing costs, e.g. interest rates
- Exceptional design solutions – functional, flexible, inspirational, reliable, with leading edge environmental and sustainable design services solutions
- Private sector innovation - experience and expertise
- Freedom and flexibility - for the public sector to focus on educational outcomes
- Innovative financial solutions - leveraging of public and private financial resources
- An integrated team – offering a single point of responsibility, an optimal whole life cost solution, and pre-agreed subcontract terms and conditions
- A community focus – building on the success of previous projects in engaging with the community, both in terms of job creation and community use facilities
- Affordable solutions – able to provide excellent value, delivered through competitive financing terms, construction economies of scale and optimal whole life costing
Houston School Districts delivered two high schools one year earlier saving $20 million.
Washington, DC, built a new elementary school allowing adjacent land to be developed privately with the proceeds earmarked for debt payment.
Georgia Tech used PPP to build a research facility when the demand was there, but not state funding.
University of Central Florida was able to build a convocation center where state funding was not available for such projects.
Florida Atlantic University is using PPP to develop a football stadium, dorms, and retail center where funds would not be available for years if at all.