Analysis on the Obstacles of Implementing Small and Medium Public-Private Partnership for U.S. Infrastructure Development: Fid-Bau Portal

Analysis on the Obstacles of Implementing Small and Medium Public-Private Partnership for U.S. Infrastructure Development

Liang, Yunping / Ashuri, Baabak

Abstract

Small and medium public-private partnership (P3) infrastructure projects get a noteworthy growth in the United States in recent years while the distribution of project size is generally stable. As the increase of small and medium P3 application, there is an emerging discussion on the use of P3 to deliver local projects which are frequently at small and medium size to meet local infrastructure needs. This paradoxical phenomenon is contrary to the classical perspective that projects under a certain size are not feasible for P3. Even though there are many rules of thumb for the minimum proper size of qualified P3 candidates, almost no elaborated justification for the thresholds of project size could be found. In contrast with the increasing implementation, small and medium P3s, especially those in developed countries, receive incongruous little attention in existing studies. By critically reviewing the literature, this paper synthesized and discussed the obstacles of implementing small and medium P3 in the United States. Transaction cost, financeability, legislative authorization, political commitment, and government capacity are major areas where the obstacles of small and medium P3 may appear. Corresponding to the summarized obstacles, the authors proposed five project features as the enablers which may contribute to the success of small and medium P3. This paper helps people better understand the obstacles of small and medium P3 in the United States and provides theoretical propositions for future empirical study.