CIOs, CTOs, and Public-Private Partnerships: Getting Started – Examples: Part 1

When your company is considering a public-private partnership, it is always good to see how others have benefitted from this kind of arrangement. While public-private partnerships are nothing new, their reach is expanding into many sectors. Companies and organizations are doing new things with these partnerships every day. 

By reading about these examples, we hope that your CIOs and CTOs feel reassured that public-private partnerships are usually successful, mutually beneficial arrangements. From student housing to infrastructure, these are inspiring examples of real-life partnerships. 

Chicago Skyway Bridge

The Chicago Skyway Bridge privatization marked the first time an existing toll road was privatized in the United States. The owner company paid the city of Chicago $1.8 million up front, agreeing to a 99-year lease during which SCC can raise and collect all toll revenue while handling all operational costs. 

The city gained the money while no longer having to maintain or operate the road. The city:

  • retired existing debt
  • paid down long-term debt
  • eliminated some short-term debt
  • established a long-term reserve and a mid-term reserve, and 
  • established a people, neighborhood, and business investment fund. 

University of Kentucky Housing

At the University of Kentucky, the school negotiated an agreement with a developer, Education Realty Trust, to build 12 facilities for living and learning. The private company handles every aspect of facilities, including management of maintenance and custodial staff, and the undergraduates assignment office, which coordinates room assignments of students in all residence halls.

The school was able to avoid the logistics of development and construction, focusing instead on instruction. One of their goals was to expand and improve student housing to recruit more learners and allow more to live on campus to improve retention and graduation rates.

The private company financed the full $450 million plan, ensuring the university incurred no debt. The lease term is 75 years, and both the private and public partners receive a portion of revenue.

Capital Bikeshare

Capital Bikeshare is a bikeshare system in metro DC, offering over 4500 bikes in 500 stations in six jurisdictions. Cyclists unlock bikes from any station, use them, and return them to any station, so the bikes can be used for one-way trips. It is a successful public-private partnership, between operator Motivate and several other entities. 

The District Department of Transportation, Arlington County, City of Alexandria, Montgomery County Department of Transportation, Fairfax County Department of Transportation, Prince George’s County, and The City of Falls Church, VA are municipal owners. Stations are sponsored by various companies and organizations including George Mason University. And private companies handle the station equipment manufacturing and bicycle manufacturing. 

With this kind of public-private partnership, cities and municipalities can better meet their climate, health, and economic objectives. At the same time, private companies benefit from running bikeshare programs without having to worry about funding, land-use planning and policies, or feasibility studies.

Bruce Power

In Canada, Bruce Power is the country’s largest public-private partnership. The company is a partnership between OMERS Infrastructure, the Power Workers’ Union, The Society of United Professionals, and TC Energy. Many employees are also owners of the business, which is the licensed operator of the Bruce Nuclear Generating Station.

All of the nuclear plant assets are publicly owned by Ontario Power Generation while Bruce Power funds infrastructure upgrades, pays rent, and pays for waste management and the eventual site decommissioning. 

All parties benefit. Bruce Power assumes the risk of the facility and funds long-term liabilities. It brings in a profit while generating competitively priced electricity for the province of Ontario.

Long Beach Courthouse

The Long Beach Courthouse is a building created through a design-build-finance-operate-maintain agreement. Courthouse repairs projects are plentiful and costly in California, and the state wanted to move risk and capital requirements to the private sector. 

The funding came from service fee and availability payments from the Administrative Office of the Courts, with lease revenue from LA county and additional revenue from parking and retail. Its developer made the initial investment and the public sector began making its payments when the building was occupied. Through the 35-year lease, the state benefits from maintenance.

At GroupLink, we believe in the power of public-private partnerships. We are here to help you make your endeavors a success with the technology you need. Get in touch with us today to learn more about what we offer and how our products can fit into your P3 plans. You can use our online contact form, call us at 801-742-8386, or email sales@grouplink.net. Our team is standing by, eagerly awaiting the opportunity to assist your organization. If you need inspiration or your P3 plans have problems, get in touch with us for the solutions you need.

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