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Abstract

In a public-private partnership (PPP) arrangement providing for financing of highway investment and operations, it will be important to ensure that the public does not perceive that the private sector partner is attempting to maximize profits through excessive peak charges while the public agency does nothing to relieve congestion on free facilities. This paper presents a new PPP model to address this issue, discusses the benefits to be gained from such models, and suggests potential “corridor level” pilot demonstration projects. The paper then assesses the financial self-sufficiency of a region-wide application of the concepts without reliance on public tax support for implementation.

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