By Berry Craig IV
P3 Kentucky Staff Writer
In June 2018, the Chicago Infrastructure Trust announced high-profile partner The Boring Company—headed by the decidedly not-boring Elon Musk, of Tesla and SpaceX fame—was selected from a group of four firms to design, build, finance and operate an express rail line connecting downtown and O’Hare International Airport. While no official price tag has been declared, the Chicago Tribune reports that Boring has estimated the cost would not exceed $1 billion.
Large-scale infrastructure projects of this sort are increasingly financed by a public-private partnership. This model was first proposed in the late 1990s as an approach to enhance flexibility for public entities in the procurement, construction and management of various public facilities. Since then, much debate has arisen regarding the conditions that must exist for the P3 approach to be successful.
While P3 arrangements can be used to deliver a wide range of economic infrastructure (roads, bridges, dams, electrical transmission lines, etc.) and social infrastructure (schools, hospitals, courthouses, museums, etc.), the delivery method should not be considered a cure-all for every public infrastructure development opportunity.
Click here to read more about the six factors for successful P3s.