1. Tools for Evaluation of Potential Public-Private Partnership (P3) Projects
Patrick DeCorla-Souza, USDOT Build America Bureau
World Bank Webinar on PPP Project Screening December 13,

2. Public-Private Partnership (P3) Toolkit
Resources
Fact sheets
Primers
Guides on:
P3 Project Financing
Risk Assessment
Value for Money
Benefit-Cost Analysis
Analytical tools
Qualitative assessment: P3- SCREEN
Quantitative assessment: P3- VALUE 2.0
Risk valuation
Financial viability
Value for money
Social welfare

3. P3-VALUE 2.0 P3 Efficiency Inputs
Benefit-Cost Analysis Module to estimate Impacts on Public Welfare
Value for Money Analysis Module to estimate Impacts on Agency Budget
Inputs
Risk
Costs
Revenue
Financing & Tax
Net Public Benefits
Conv.
Delivery P3
Conv. Delivery
VfM
Difference in Net Public Benefits
Cost & Schedule Differences
Quality Differences
To illustrate the BCA process, this paper presents and evaluates alternatives for a hypothetical project using FHWA’s P3-VALUE 2.0 analysis tool. Practitioners may use the P3-VALUE tool to better understand the concepts, inputs, key assumptions and outputs from evaluations of risk, financial feasibility, "value for money" and benefit-cost analyses used to compare the aggregate financial benefits and costs of a P3 alternative with traditional procurement. It may be used by practitioners for high-level screening evaluation of actual projects.
The complexity of the detailed-level analyses required for later stages of project development for specific projects requires that the analyses be done by experts using more detailed modeling. The Benefit-Cost Analysis (BCA) module of the tool assists the user in understanding the potential scale of societal net benefits that may be achieved by delivering a project as a P3, including the benefits from accelerating the project.

4. Illustrative Example: Impact on Agency Budget ($M in present value)

5. Illustrative Example: Impact on Vehicle Users ($M in present value)

6. US DOT Resources Websites:
Build America Bureau:
Federal Highway Administration:
Build America Transportation Investment Center (BATIC) Institute:
Point of contact:
Patrick DeCorla-Souza, P3 Program Manager: patrick.decorla-
Key Message
Another key part of a P3 – in addition to risk transfer, procurement packaging, and financing – is the payment mechanism, or how the concessionaire compensated. The payment mechanism is not separate from risk transfer, but in part reflects risk transfer.
Background Information
A Toll concession (revenue risk) payment mechanism is where the concessionaire receives compensation through obtaining the right to collect the tolls on a facility; under this model, the concessionaire is accepting the risk that toll or other project receipts will be sufficient to compensate for the costs to repay debt and fund other concessionaire responsibilities such as operations, maintenance and renewal. Referred to as accepting “revenue risk”.
Availability payment concessions, where the concessionaire receives a periodic payment from the public partner based on the “availability” of a facility at the specified performance level.
Shadow toll concessions, where the concessionaire receives a set payment for each vehicle that uses the facility from the public owner rather than from the actual users. In the U.S., they have been used in public-public agreements in Texas under the term "pass through tolls" to repay local agencies for their up-front investments in a project.
Time Allocation
A total of 2 minutes.