📅 Published: 10 May 2025
✍️ By: B. Oyuntugs
In the United States, Public–Private Partnerships (PPPs) have played a crucial role in improving the national highway system, easing traffic congestion, and accelerating infrastructure upgrades — without overburdening public budgets.
Here’s how the U.S. has successfully deployed PPPs to modernize its roads and reduce congestion:
🛣️ 1. Concession-Based Highway Projects
These projects follow a Design-Build-Finance-Operate (DBFO) model, where the private sector builds and operates infrastructure under a long-term contract and later hands it over to the public.
Example:
California’s 91 Express Lanes
- Built and managed by private firms under a PPP concession model.
- Helped reduce traffic on parallel highways and generate toll-based revenue.
- Improved commuting times and offered express lanes as a premium alternative.
💰 2. Toll Roads Operated by Private Firms
Toll roads funded and maintained via PPPs have become common across many U.S. states.
Example:
Indiana Toll Road
- In 2006, a private consortium was granted a long-term lease to operate and improve the highway.
- The PPP agreement attracted substantial private investment and ensured long-term maintenance.
🚧 3. Road Expansion & Upgrades
PPPs have been instrumental in expanding congested roads faster and with better financing.
Example:
Texas 121 Tollway
- Privately built and operated expressway, later transferred back to the state.
- Accelerated project delivery and enhanced regional connectivity.
🌉 4. Bridge & Tunnel Projects
Major PPP projects in this area include:
- New York’s East River Bridges
- Miami Port Tunnel
These projects combined private capital and technical expertise to deliver complex engineering works on time and on budget.
🔑 Benefits of the PPP Model for Roads:
✔️ Private investment reduces strain on government budgets
✔️ Faster, more efficient construction and maintenance
✔️ Improved road quality and lifespan
✔️ Greater accountability through performance-based contracts
⚠️ Challenges & Risks:
- Toll rates may rise when projects are profit-driven
- Government must retain regulatory authority to protect the public interest
- Transparent legal frameworks are crucial for success
✅ Key Takeaway:
Instead of relying solely on government to solve traffic problems, U.S. cities have partnered with the private sector to develop multi-lane expressways, elevated corridors, and smart road networks.
This approach shows that cities like Ulaanbaatar could benefit by adopting tested PPP models, enabling private developers to help build infrastructure while the government focuses on policy, planning, and oversight.
📚 Further Reading & Resources:
- LADOT – Los Angeles Department of Transportation
- Caltrans – California Department of Transportation
- U.S. Department of Transportation – PPP Programs
- World Bank PPP Projects
- OECD PPP Guidelines
- [Cambridge University Press – PPP Infrastructure Handbook]
- PPP Knowledge Lab
- World Economic Forum – PPP Insights
🔎 In Summary:
Public–Private Partnerships are not just about financing — they are about delivering faster, smarter, and more resilient infrastructure. Let’s learn from successful PPP cases and co-create Mongolia’s next-generation road systems.
