P3 Structuring Guidelines for Local Governments, District of Columbia

Agency: District of Columbia; Living Cities and Citi for Citi Foundation

Morgner’s Role: Project Director (Dr. Julie Kim)

Project Description:

Development of P3 project structuring guidelines for municipal assets for local governments in the U.S. interested in exploring P3 and alternative financing and delivery options for their capital improvement projects. Project Director Dr. Julie Kim led a study to develop comprehensive guidelines for structuring P3 deals for different municipal assets, including public buildings, schools, public health facilities, fiber-to the-home (FTTH)/broadband, waste-to-energy conversion, justice/correctional facilities, and street light modernization. Focusing on local governments, the study provided alternative financing strategies to fund infrastructure projects beyond issuing public debt (i.e., issuing bonds), including P3 concessions, franchise agreements (e.g., build-operate-transfer), and various lease arrangements (e.g., lease/leaseback) where local sponsors can avoid issuing long-term debts altogether. For the use of P3 method, the study identified alternative structuring forms suitable for each municipal assets and provided guidance in establishing formal processes that can facilitate the selection of optimum financing/delivery option.