Public Private Partnerships (P3s) are contractual agreements between a public agency and a private entity that allow for greater private participation in an innovative delivery of projects.
MDOT utilizes P3s to leverage private sector expertise and mitigate risk for the state on large infrastructure projects. P3s offer an opportunity to tap new financing sources, and a new means to procure infrastructure, by partnering with a private entity to perform a variety of functions to deliver the project, such as design, build, finance, operate and maintain the transportation facility.
Maryland’s P3 law signed in 2013 provided the private sector with a stronger, more predictable process, with the ability to complete the project in an accelerated schedule, and guaranteed levels of performance.
A P3 is a method for delivering public infrastructure assets, such as highway improvements, with an agreement between the State and a private entity. The private entity would perform functions normally undertaken by the State which may include designing, building, financing, operating, and maintaining a transportation facility.