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Jan 2007
Ground Rules for a Public Private Partnership in New Jersey
Governor Corzine and the New Jersey legislature are currently determining whether to pursue private investment in the State’s transportation assets. These proposals, collectively known as public private partnerships (PPPs), can have the effect of transferring control of public infrastructure systems – such as highways – to private entities. PPPs offer the potential to gain significant immediate financial gain, but usually rely on investors recouping their payment over time through toll collection and other revenue sources. Perhaps the most important aspect of these proposals is that they entail long-term fiscal consequences. The public must be well informed of the potential implications of any proposed asset sale or lease.
A PPP around a highway is not necessarily a good or bad proposition. The details of the agreement, contract or lease that establishes the partnership determine its value to the State, private investors, motorists, and New Jersey residents. PPP agreements are long and complex, requiring hundreds of hours of highly-skilled professional input and resulting from high level negotiations. PPPs also require enabling legislation at the State level. These agreements and legislation can contain the answers to some important questions, including:
New Jersey residents, especially motorists, need to know the answers to these questions.
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