Private Financing of Public Infrastructure: Risks and Options for New York State


The Office of the State Comptroller of New York has released a report in which identifies a number of the risks associated with privately financed infrastructure agreements and suggests ways to reduce such risks. If New York is going to join other states in allowing privately financed P3s, the report states, lessons learned elsewhere may help avert costly mistakes.The Office of the State Comptroller recommends that, before State agencies are authorized to use P3 financing, policy makers should first develop a better understanding of the potential costs and benefits of this approach.The State of New York has authorized a number of agencies and public authorities to use a simple form of public-private partnership known as design-build contracting. For instance, the Thruway Authority's procurement of the new Tappan Zee Bridge is being undertaken using the design-build method. In April 2013, a consortium led by Macquarie and Kiewit won the tender process for a 40-year design-build-finance-maintain contract to replace Goethals Bridge. 

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