White House releases long-awaited P3 program funding opportunity

The U.S. Department of Transportation Monday released a long-awaited funding opportunity for states and cities interested in public-private partnerships for transportation projects under a first-of-its-kind program that’s part of the Infrastructure Investment and Jobs Act.

The $100 million Innovative Finance and Asset Concession Grant Program, created as part of the IIJA, is aimed at helping states and cities create an inventory of their assets and consider P3s, including asset concessions, for projects that could “reasonably” be considered eligible for Transportation Infrastructure Finance and Innovation Act loans.

The program offers two types of grants: technical assistance grants “to develop, review, or enter into asset concessions to advance TIFIA-eligible projects,” and expert services grants “for project development of identified assets, including hiring professional services to explore opportunities for leverage.”

The program is a centerpiece of federal policy support for public-private partnerships, and the guidance comes as the Build America Bureau expects to close on $19.5 billion worth of transportation infrastructure projects in the next 18 months.

“The bottom line on this program is it helps level the playing field for owners to consider all procurement models, especially alternative procurements and public-private partnerships,” said Marshall Macomber, senior policy advisor for the Association for the Improvement of American Infrastructure. “The point is to let the owner/agency have the tools to help procure the program under the best delivery model,” Macomber said. “It’s clear that Congress and the department has heard the need from owners for access to qualified advisors.”

The NOFO will award up to $57.7 million on a competitive basis, covering fiscal years 2022, 2023, and 2024. Applications are due May 9.

“This program is a great example of how we are empowering state and local governments to deliver transformational transportation projects,” said Deputy Transportation Secretary Polly Trottenberg in a statement. “The grants will allow local and state leaders the opportunity to explore innovative financing solutions by accessing external expertise and building internal support.”

The Build America Bureau, the DOT’s P3-focused office, is administering the program. The industry is still waiting for the bureau’s release of guidance for value-for-money analyses, a key part of the P3 process and one that the IIJA requires for certain federally funded projects.

The bureau last November awarded13 grants 13 grants totaling $3.4 million through the Rural and Tribal Assistance Pilot Program, which is a similar but smaller program for rural and tribal entities.