Governor George Pataki pioneered public-private partnerships (“P3s”) in New York with deals such as the privatization of Stewart International Airport, the building of JFK’s International Arrivals Terminal, and the redevelopment of abandoned mental health facilities. Will Governor-elect Eliot Spitzer work with the Legislature to put a statutory framework in place to advance P3s to the next level?

He certainly has the opportunity to do so. New York faces some daunting and expensive infrastructure challenges – a new Tappan Zee Bridge, the conversion of Route 17 to I-86, a new Peace Bridge, etc.

Since the privatization of Stewart in 2000 significant advances have been made in transportation P3. In 2004 Chicago privatized its 8-mile Skyway for $1.8 billion. In June 2006, Indiana privatized its toll road for $3.8 billion. Virginia is evaluating proposals for public-private development of a third crossing for Hampton Roads as well as a new U.S. Route 460.

Public-private infrastructure development should not be partisan issue. In addition to outgoing Republican Governor Pataki, P3 practice leaders include Chicago Mayor Daley, former Virginia Governor Warner and current Governor Kaine, all Democrats. Moreover P3 is additive. By structuring public-private partnerships where appropriate (e.g., the Tappan Zee Bridge), more public capital is freed up for smaller projects that may not have a private component. The bottom line for P3 - more steel is erected and concrete is poured and more construction jobs are created.

With public capital dollars tight, voters fed up with taxes, and the State busting through its debt capacity, P3 provides a viable alternative. There are potential partners willing to risk their private capital in furtherance of the public good. What they need is encouragement and certainty. That support can be provided statutorily with legislation that draws out the best ideas from the private sector. Model P3 legislation can be found in Virginia, viz., the Public Private Transportation Act and the Public Private Education and Infrastructure Act. Importantly, both acts provide for consideration of non-solicited proposals.

At the end of the day, governments are measured not by what they own, but what they deliver. Given the chance, public-private partnerships will facilitate the delivery of quality infrastructure.

John Buttarazzi is the Managing Director of Liberty Hall Advisors, LLC.

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