Using the practical power of public-private partnerships to improve infrastructure

America’s transportation infrastructure is quietly decaying. The problem isn’t a lack of engineers or funding. The outdated procurement models that drag out projects and drive up costs are a primary problem. Why are communities waiting years for something as basic as a safe bridge? 

Public-private partnerships (P3s) can deliver megaprojects but can also add value by addressing smaller-scale infrastructure facilities that people rely on every day. Local bridges, transit hubs, and rest areas may not grab headlines, but they shape commutes, commerce, and safety. In a country where mobility helps drive opportunity, infrastructure project delays don’t just cause inconvenience—they drive decline. Every postponed or long-delayed transportation project slows growth, deepens disparities, and erodes public trust.

Pennsylvania faced this challenge directly. With more than 4,000 structurally deficient bridges statewide, the Pennsylvania Department of Transportation (PennDOT) launched the Rapid Bridge Replacement Project to tackle 558 of them in a single package. The winning consortium, Plenary Walsh Keystone Partners, agreed to finance, design, build, and maintain the bridges until 2042.

Instead of paying the company all at once, PennDOT used an availability-payment contract. Under this arrangement, the private partner is paid gradually over 25 years, provided that the bridges are open to traffic and meet safety and maintenance standards. This approach was the best fit for Pennsylvania because hundreds of small rural bridges could never generate sufficient toll revenue. By tying payments to availability and condition, PennDOT accelerated delivery without creating a new revenue stream.

The contract also clarified who was responsible for which risks. Plenary Walsh Keystone Partners assumed responsibility for design, construction, financing, and long-term maintenance. If bridges were delayed, failed inspection, or fell below contractual standards, PennDOT could reduce or withhold payments. This created a direct incentive to build durable structures and keep them in good condition over time.

At the same time, PennDOT retained certain risks that only the state could manage—such as acquiring rights-of-way, coordinating utility relocations, and monitoring performance. These responsibilities meant the public agency still had to step in at times, but the private partner was directly accountable for the timely, durable delivery of hundreds of bridges. The result was a win-win: Pennsylvania taxpayers saw a large backlog cleared years sooner, while the private consortium secured steady returns by meeting strict performance requirements.

Other states have shown the same principles at work. In Colorado, the US-36 Express Lanes public-private partnership delivered two new express lanes, rebuilt two general-purpose lanes, added five bus rapid transit stations, and built 12 miles of bikeway—completed under a concession that tied private payments to performance.

In Louisiana, the I-10 Calcasieu River Bridge reached financial close in August 2024, with a private consortium now responsible for designing, financing, constructing, and maintaining the 5.5-mile corridor between Lake Charles and Westlake. These results show that P3s not only save time but also raise expectations for how quickly and effectively infrastructure can be delivered.

Public-private partnerships are not without risks, and strong oversight is essential. PennDOT’s Rapid Bridge Replacement Project demonstrated the importance of anticipating and managing challenges early. The department learned that some utility companies lacked the capacity to relocate their lines on schedule, resulting in delays. To keep the project moving, PennDOT stepped in directly when outside partners failed to respond to the private contractor. The agency also determined it was more effective for the state itself to handle right-of-way acquisitions, leaving the private partner to focus on design and construction responsibilities. Beyond these examples, PennDOT still faced other risks, including:

• Coordinating with local governments and permitting agencies on necessary approvals;
• Ensuring contract compliance through ongoing inspections and monitoring;
• Defending the project against possible lawsuits, legislative changes, or political opposition; and
• Guaranteeing availability payments, because the state’s credit ultimately backs them.

To reduce those risks and strengthen future infrastructure projects, governments should adopt clear safeguards in P3 contracts, including:

• Net worth maintenance requirements: A rule should require the private partner to maintain sufficient assets to always meet its obligations. This prevents the company from running out of funds or abandoning the contract before it is complete;
• Performance monitoring: Regular inspections and reports to confirm the project meets safety and service standards, with penalties if it doesn’t;
• Independent audits: Outside reviewers ensure that the private partner is meeting its obligations; 
• Contingency planning: The state retains the authority to step in and complete the project if the private partner fails to meet its obligations; and
• Defined public responsibilities: Clear roles for the government, such as acquiring land, relocating utilities, and securing permits, so there’s no confusion about which tasks remain public and which belong to the private partner.

Policymakers who confine public-private partnerships to megaprojects are missing their most significant value: delivering the everyday infrastructure that communities notice most. States should look to enter into P3s for moderate-cost infrastructure projects, such as the Pennsylvania bridges project, which can be completed efficiently, at lower cost, and with greater accountability. The question isn’t whether mid-sized public-private partnerships work, but why more states aren’t using them now.

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