Two Major Infrastructure P3 Projects Attracting Industry Attention
Two major infrastructure projects in the U.S., Tennessee’s $9.2 billion Interstate 24 Southeast Choice Lanes and Georgia's $4.6 billion State Route 400 Express Lanes, are gaining attention for their use of public-private partnerships (P3s) with concession agreements. These models allow private consortia to fund, design, build, operate, and maintain the projects in exchange for future revenue from tolls or other fees over long periods—up to 56 years in Georgia’s case. The consortium model offers contractors a stable source of work and income across decades but requires significant upfront investment. For example, Peach Partners—a group including Acciona Concessions, ACS Infrastructure, and Meridiam—is investing $3.8 billion for the Georgia project. Experts suggest that while these large-scale projects are challenging for single entities or smaller firms to manage alone, they may serve as a model for applying similar P3 structures to medium-sized infrastructure projects in other sectors like aviation. Industry leaders believe this shift could help governments move from fixed-cost models toward revenue-generating ventures and open new opportunities for diverse participants.
Topics: concessions construction toll revenue transportation infrastructure