Public-Private Partnerships: Cost-Effective or Cash Cow?

Public-private partnerships between local governments and private contractors have the Trump Administration's favor. But in a "P3 market in its infancy," can they cut costs or simply line pockets?

1 minute read

June 27, 2017, 11:00 AM PDT

By Philip Rojc @PhilipRojc


Freeway Construction

Tim Roberts Photography / Shutterstock

Cited by the Trump Administration as an effective means to build out infrastructure, public-private partnerships let local governments work directly with private companies. Not to be confused with public-private initiatives of the philanthropic variety, "PPPs" or "P3s" prompt a lot of debate.

Matthew Goldstein and Patricia Cohen write: "Companies can complete projects quicker and more cheaply than governments can, proponents say. Letting private industry take the lead can also limit the amount of debt that cities and states need to take on."

Overall, the authors appear unconvinced. "And whatever the advantages of giving the private sector a stake in public works — rather than leaving the government in control — experts agree that while some public-private partnerships may result in near-term savings, there is little hard evidence that they perform better over time."

Cohen and Goldstein note that P3 deals are more common in Canada and overseas due to a bigger municipal bond market in the United States (and a correspondingly smaller P3 market). The worry is that if they're implemented more often in this country, P3s will fail to cut costs, instead transferring them to the public via long-term contracts.

Tuesday, June 6, 2017 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Washington

Washington State’s Parking Reform Law Could Unlock ‘Countless’ Acres for New Housing

A law that limits how much parking cities can require for residential amd commercial developments could lead to a construction boom.

May 1 - Streetsblog USA

Bluebird sitting on branch of green bush.

Wildlife Rebounds After the Eaton Fire

Following the devastation of the Eaton Fire, the return of wildlife and the regrowth of native plants are offering powerful signs of resilience and renewal.

May 1 - AP News

1984 Olympics

LA to Replace Inglewood Light Rail Project With Bus Shuttles

LA Metro says the change is in response to community engagement and that the new design will be ready before the 2028 Olympic Games.

May 1 - Newsweek

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.