What is a Public-Private Partnership?
A Public-Private Partnership (also known as “P3” or “PPP”) is a partnership between a public agency and the private sector designed to more effectively provide services and infrastructure traditionally provided by the public sector. Such partnerships are characterized by the sharing of risk, responsibility and reward between the partners. As a result, public-private partnerships have become the single most effective tool for economic development.
The heart of a public-private partnership is the sharing of risks associated with starting a new project or enterprise. For the partnership to work, public agencies and private parties must understand each other’s risks, including which risks are acceptable and which risks must be avoided at all costs. As an example, the private sector must understand that any risk to the general fund of a public agency is generally viewed as unacceptable. Conversely, public agencies must understand that a minimum level of return on an investment is crucial to securing equity or debt financing for a new project or enterprise. NHA Advisors provides a bridge between the public and private sectors to create win/win joint ventures.
NHA Advisors has negotiated P3 partnerships for master-planned communities, commercial developments, hotel and recreational projects and an amusement park. We have worked with both public agencies and private parties throughout California to bring these projects to fruition. Our goal is not simply to justify a public financing, but to negotiate a business deal that will bring a project out of the ground and benefit all parties. With this in mind, we welcome each opportunity, from both public agencies and private companies, to create a new public-private partnership.
Public Private Partnerships