Civint CEO Sam Johnson’s expertise in the area of Public/Private Partnerships shines through in a recent article in P3 Bulletin, an international publication targeted to leaders in the public and private sectors who form partnerships to design, build, finance, operate and maintain public infrastructure.
Johnson is widely regarded among private sector leaders and mayors around the country as a go-to person for insight and advice regarding the nuances of creating successful public-private partnerships.
The article focuses on the long-term challenges the New York City area airports have faced to improve their infrastructure and, in turn, their perceptions.
One of the challenges outlined in the article is the fact that the state of New York has no “broad spectrum” statutory authority to manage public-private partnerships.
Johnson acknowledged the hard work and creative approaches the New York airports used to make these infrastructure improvements possible. (excerpt from the article is below)
“The New York airports’ efforts help raise awareness and really serve as an impetus instead of a model,” he explains. “They deserve tremendous credit for what they’ve accomplished and their creative use of P3s and the private sector.
“They also deserve special credit for the speed in which they executed very complex projects in very demanding circumstances.”
However, this doesn’t mean Johnson is convinced they can provide the blueprint for other airport P3 projects. “As we all know every P3 project is different. And while other cities are very interested in renovating existing terminals or creating new facilities, their situations are very different than the PANYNJ’s. So Atlanta, Miami, St. Louis, Portland, Kansas City, and others look to New York as a starting point, not as a model. And in fact, some of them are already well past that point, having already integrated alternative delivery into their capital programs.”
In his work with mayors, Johnson advises that the first part of any project is an assessment to determine exactly what is needed and how best to attain it, whether it’s a P3 or not. In some instances, not using a P3 for one project can prove strategically advantageous.
“You don’t want to tie up your bonding capacity if you have additional infrastructure needs down the road,” he continues. “You may have an airport need, but that’s part of a bigger picture involving other infrastructure investment. So you have to figure out how you can structure a project so that you bring in the private sector to cover those other needs. “P3s can be used strategically, particularly with airport projects because airports have a longstanding tradition of working with the private sector. And the same applies to risk apportionment. That should also be approached strategically as part of the bonding/financing question.”
