Puerto Rico sets P3 example for US

Author: Danielle Myles | Published: 30 Nov 2011

The first transaction under Puerto Rico’s public-private-partnership authority (PRPPPA) has set some valuable lessons for budding P3 programmes throughout the US.

The 40-year privatisation of toll roads PR-22 and PR-5 is the first brownfield concession in the US since 2006, carries full traffic risk, and attracted financing from 12 banks as a club.

The deal, which closed in September, shows that road and related asset P3s will attract the interest of equity and debt investors if they are properly structured and based on reasonable assumptions, said Milbank partner Jonathan Green who acted for the lenders.

The deal being financed by a large number of investors without being underwritten is strong evidence of this.

"The main thing that made this project happen was having government...