Disclosure and the U.S. P3 Market

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Source: Harvard Kennedy School Review

The Backdrop to the U.S. P3 Experience

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•  Infrastructure Decisions made at the state and local level. •  Growing need to fix failing Infrastructure •  Declining Historical revenue bases •  Heavy concentration in 5 states and in Transportation •  Vast majority are Greenfield transactions

Source: Harvard Kennedy School Review

The U.S. P3 Market is Quickly Gaining Momentum.

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“The U.S. has the potential to become the largest P3 market in the world given the sheer size of its infrastructure.” Moody’s – Sept. 2014

Transparency & Disclosure Drivers in Leading P3 States

Increase Confidence / Awareness of Government

Programs

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Increase Private Sector Involvement & Competition

Improve Efficiency

Prevent Corruption

Level Playing Field

Value for Money

Each state has a Freedom of Information Act in some form. They vary substantially in content and level of detail.

Stakeholder Engagement

State/Authority Undertake P3 Process

Legislative Body Reacts to Public Concerns

Study of What Should Have Been Done

New Laws or Regulations Enacted

State/Authority Practice Updated

Disclosure Laws are typically enacted at the state level.

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Often follow a reactive pattern of evolution

The Spectrum of Disclosure Practice

Simple List

Publish on web

Final RFP/Shortlist

Redacted Final

MINIMAL PRO-ACTIVE

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Extensive Project Description

Details including evaluations

RFP versions, Notes on bidder consultations

Final with limited redactions, Evaluation scores, some parts of financial model

Private Sector Participants •  Growing appreciation for transparency •  Prefer post bid disclosure •  Role of stipends

Project Pipeline

RFQ

RFP

Contract

Evolution of Disclosure

CHECK THE BOX CONNECT THE DOTS

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Disclosure is key to public support for growth in P3s Public engagement is critical to effective implementation Higher volume states are:

• Increasing Public Outreach • Tailoring Programs to Specific Projects • Addressing Project Impacts.

TO

Active US states are moving from:

Basic Disclosure Interactive Public Engagement

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