Feb 13, 2015
From the Government Institute
Public-private partnerships, or P3s, have nearly a quarter-century track record of delivering infrastructure and services for public sector agencies worldwide.
Traditionally, P3 projects have been nondefense-related, such as construction of roads, bridges, schools, hospitals and prisons. But some of the most interesting applications have been in the defense sector, where the United Kingdom in particular has blazed a trail with almost 50 P3 initiatives, raising $15 billion in private sector financing.
In the United States, at the federal level, P3s have primarily been used by the Defense and Veterans Affairs departments, although on a relatively narrow basis. As the Defense Department’s financial pressures continue to mount, the opportunities to use P3s could become more apparent and their acceptance as a viable option could grow.
In this Government Executive article, KPMG Managing Director Nicholas Greenwood looks at how the Defense Department might benefit from P3s by reducing costs, avoiding upfront spending for infrastructure projects by leveraging private sector investment, and utilizing private sector innovation and experience to increase value-for-money.
Nicholas J. Greenwood
Managing Director, Infrastructure Advisory