Among VDOT's many P3 projects to date is the ">$2-billion Capital Beltway, now entering its midway point. A P3 concessionaire is financing, building and will eventually operate new toll lanes and high-occupancy vehicle lanes for 80 years.

Fluor Corp., one of the few American firms that has garnered a lengthy résumé in P3s, is serving both as a partner of the concessionaire team and as the design-build team prime. Concessionaire lead Transurban, Australia, also will serve as the toll operator. "There certainly is some optimism that [these kinds] delivery models will expand," Dougan notes.

Building a Pipeline

But even as more P3 delivery systems gain new fans in the U.S., many states lack a solid pipeline of P3 projects, experts say. Some ">P3 efforts did not go well, including in Texas and in Georgia, with pushback from a public wary of the prospect of private firms building and tolling traditionally public, once "free" facilities for long periods of time.

Moreover, public agencies, particularly U.S. transportation departments, have historically been reluctant to give up customary levels of control over the design and construction process. Further, private firms, especially contractors, have historically been hesitant to take on too much risk.

Yet, "a big driver for not doing P3 is if the government feels it can't transfer some big risks," noted Amanda Farrell, assistant vice president of Partnerships British Columbia, a province-owned private company specializing in P3 deals. "You need a thorough understanding of the project. You don't want there to be changes as you go through the process."

If that happens too often, investors will cease to see U.S. infrastructure as an attractive deal, warned Harry Seekings, infrastructure director for specialty fund manager Infrared Capital Partners. "If a market gains a reputation as one that's always having problems, the money will go to markets that follow through."

Trust is the bottom line among the agencies involved in P3 projects, adds MMM's Jull. "Wheels fall off projects sometimes, but if it happens too many times, we'll take our A team and pursue projects somewhere else."

According to Flatiron's Matt Girard, vice president of business development, U.S. infrastructure owners should be ready for what a value-for-dollar analysis says and live up to it. Some analysis will say different things regarding different potential P3 deals, which can shake confidence in a project, adds Wingerter.

One way to avoid problems is for public owners to withhold requests for proposals until officials are fully confident in the project, adds Farrell. They also have to be confident in the P3 process, adds Jull. "Early projects [in Canada] had strong political leadership. They were ready to push it all the way," he said.

This story was updated to correct the reference to the newsletter "Public Works Financing."