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Availability Payments in Public-Private Partnerships: Issues and Implications

As localities and states in the U.S. consider public-private partnerships (P3s) to build new infrastructure, some believe that contracts structured with “availability payments” are a better alternative to the revenue-risk contracts that have failed in the past. While P3s constitute a small portion of infrastructure procurement in the U.S., since 2009, about half of new P3 projects included availability payments.

This research brief provides a basic introduction to availability payments, followed by four issues that are important for policymakers and stakeholders to understand when considering an availability payment P3. Key questions for policymakers to consider follow each section.

                                                       downloadguide

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