A contract between a public sector authority and a private sector entity pursuant to which the private sector party agrees to perform some or all of the aspects of an infrastructure project (for example, financing, design, construction, operation, and maintenance). P3s may be used develop, build, modify, rehabilitate, or expand a wide variety of transportation and social infrastructure projects such as highways, power plants, bridges, pipelines, airports, and schools.

In exchange for providing these services, the private sector party may be entitled to receive tolls, user fees, or payments from the public sector authority.

For more information on P3s, see Practice Notes, Public Private Partnerships: Issues and Considerations and Negotiating Concession Agreements for Public Infrastructure Projects.