Minnesota Department of Transportation Research Services Section
Facing rapidly increasing demand for new or additional transportation capacity, many states are eagerly exploring
public-private partnership (PPP) in state highway development, which may allow public agencies to access private
project financing and specialized expertise, and thus save public investment, expedite project completion, or
improve service quality and diversity. Nevertheless, the path of PPPs is not smooth. The confusion and controversy
surrounding recent asset-monetization leasing concession cases in the US have led to widespread public concerns
and legislative caution, in particular on the question of whether a PPP project is advancing the public interest. The
purpose of this project is to study the public interest associated with PPPs, with the goal to maximize efficiency
gains, mitigate potential risks, and address public concerns in launching and deploying PPPs in state highway
development. In particular, we focus on three aspects of PPP consideration: (1) Understanding economic rationales
of PPPs, (2) Legal and political aspects of PPP decision-making, and (3) Managerial issues in implementing PPP
Minnesota Department of Transportation
Research Services Section
Zhao, Zhirong (Jerry); Saunoi-Sandgren, Emily; Barnea, Avital.
Advancing Public Interest in Public-Private Partnership of State Highway Development.
Minnesota Department of Transportation Research Services Section.
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