Volpe Center: Transportation Strategic Plans

IV. Obstacles to Public/Private Partnerships

"It still holds true that man is most uniquely human when he turns obstacles into opportunities." - Eric Hoffer (1902-1983), U.S. Philosopher. Reflections on the Human Condition

Typical barriers to successful PPPs include building consensus, overcoming financial and institutional obstacles, and negotiating differences in culture. During panel presentations, Sheila Lynch (Northeast Advanced Vehicle Consortium [NAVC]), David Fairman (Consensus Building Institute), Michael Filipiak (MHF Associates), and David Glater (Volpe Center) shed different perspectives on these matters.

Financing, Governance, and Legal Barriers

Lynch, as moderator and presenter of the successful NAVC partnerships, offered several recommendations to ensure that fiduciary interests of the public sector are maintained in dealings with companies operating with dissimilar motivations. Suggesting a streamlined approach to launching and financing PPPs, Lynch became the first of several panelists to recommend the use of "other transactions," an innovative finance technique that relaxes the FAR procedures (see Box 3).

Glater's discussion of partnering relationships and ethical considerations, Fairman's presentation on consensus building, and Filipiak's talk on profit needs of private firms, all emphasized the need for due diligence and issue resolution prior to project initiation. Many of these same points were later echoed by David Forsberg (Worcester Business Development Corporation); in particular, emphasizing the critical importance of developing a PPP master plan.

Lessons Learned from 10 Years of Public/Private Partnerships: NAVC

"What defines a
success may not be
what you originally
set out to do."