Public-Private Partnership

Legislation

Pursuant to La. R.S. 48:250.4, when determined to be in the best interest of Louisiana taxpayers, DOTD may solicit proposals and enter into contracts for P3 projects upon approval by the House and Senate Transportation, Highways and Public Works Committees.

P3 is an innovative procurement method that allows the DOTD to contract with a private entity to share in project costs and financial risk while leveraging the private entity’s expertise and resources. ​

Reasons to use P3

• Enhanced efficiency through private sector innovation and expertise
• Accelerated project delivery with streamlined approvals and integrated execution
• Predictable long-term costs with fixed-price contracts and risk transfer
• Reduced public-sector financial burden by leveraging private investment
• Minimized lifecycle costs through performance-based incentives and long-term responsibility
• Optimized risk allocation by assigning risks to the party best equipped to manage them
• Improved asset quality and maintenance due to private-sector involvement over the project’s lifespan.