Historically, Public-Private Partnership (P3) agreements have been focused upon economic development projects proposed by developers looking for financial assistance from a jurisdiction that stands to benefit from the project. However, these agreements have now evolved to include a wide range of potential uses. Accordingly, P3 implies any agreement as long as it involves a contract between the public sector and the private sector where the private sector is providing public services or public benefits (including financing assistance from the private sector).
Any government entering into a P3 should be advised of the risks and long term financial implications of these arrangements. GFOA has developed an Advisory regarding the use of P3 agreements.
When deciding to move forward with a P3 deal that is in the best interest of the public, there are a number of general considerations that should be evaluated. In recognition of the changing landscape of P3 agreements, GFOA created four separate documents providing information on the different types of P3 agreements. Each contains information for preliminary evaluation, retaining advisors or experts, economic and fiscal impact analysis, service level implications, and risk assessment.