This paper explores the effectiveness of using Public Private Partnership (P3) deals to improve or create railway assets. The opportunities and issues involved are applicable to other asset-intensive and safety-critical utilities with a high level of human interaction and large investment needs. The authors draw upon personal experience of projects involving P3's from the UK, Europe, North America and South America, and also privatizations and restructurings with similar characteristics. From this experience, a number of lessons are drawn of interest to suppliers, clients, promoters, and financiers of such projects.The authors conclude that P3's are a valuable delivery mechanism for large infrastructure projects, including railways, in circumstances where there is social and economic need for the asset, but where the client's access to capital funding is limited.There are some disadvantages for certain types of clients, which will be exacerbated when the project specification and controls are weak. Accordingly, close collaboration between the client and their professional advisors, together with a willingness to accept the strictures of a P3, are essential factors for success.
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