5. Clearly Defined Revenue Stream
Private P3 partners generally provide a portion or all the funding for capital improvements. Over the term of the financing an identifiable revenue stream must be created to retire the bond financed investment. The income stream can be generated by a variety and combination of sources such as fees, availability payments, tax increment financing, commercial use of underutilized assets or a wide range of additional options.
6. Stakeholder Support
People impacted by the P3 partnership are not just public officials. They include employees, sections of the public receiving the service, labor unions, the press, and relevant interest groups. They will all have opinions and likely misconceptions about a 3P partnership. Communication is important to overcoming potential resistance and convincing the public that P3s are a fair, cost effective and worthwhile financing approach over the long term.
7. Pick Partners Carefully
Selecting vendors having the “best value” and not always the lowest price is a key to success in a partnership. Experience with P3 partnerships can be a requisite. The financial capacity of the private P3 partner should be considered.