The favourability of U.S. PPP enabling legislation and private investment in transportation infrastructure

• Published in: Utilities policy 2017-10, Vol.48, p.157-165
• Main Authors: Geddes, R. Richard, Reeves, Eoin
• Format: Article
• Language: English
• Subjects: Enabling legislation; Infrastructure; Public-private partnerships; United States
• ISSN: 0957-1787; 1878-4356
• DOI: 10.1016/j.jup.2017.07.002

The capacity of individual U.S. states to utilize public-private partnerships (PPPs) is influenced by the existence and nature of PPP enabling laws. We examine the nature of PPP enabling legislation and how it varies across states. Although commentators stress the importance of enabling laws, the relationship between the favourability of legislation and the transportation PPPs completed in each state remains unclear. We study three states where substantial PPP investment has occurred. That experience sheds light on the type of legislation required to remove obstacles to PPP investment but also the constraints remaining in each state. We uncover a relatively weak connection between enabling laws and PPP investment activity. We conclude that the existence of enabling legislation is a helpful but not necessarily sufficient condition for PPP investment. •Examines the content of PPP Enabling Legislation in the U.S.•Conducts three case studies to examine how PPP enabling legislation has evolved.•Tracks the procurement of privately financed PPPs in the transportation sector in the context of evolving legislation.•Finds a relatively weak connection between enabling laws and PPP investment activity.