Public-Private Partnerships (P3)

Public-Private Partnerships (P3) using the Design, Build, Finance, and Maintain (DBFM) contracting model allow for greater private participation in the delivery of projects and involve the private sector in managing project risks such as design, construction, finance, and long-term operation and maintenance some of which have generally been under the purview of MDOT. The use of the DBFM model involves significant risk transfer to the private partner and in the case of the Segment 3 project, has resulted in the acceleration of construction completion by over 10 years. The funding of the project is a combination of direct investment by OCP and private bondholders, and participation by MDOT in the form of milestone completion payments and quarterly payments for the duration of the maintenance period.