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Why Choose a PPP?

 

 

Public Private Partnerships Vs. Municipal Bonds

 

Why choose a Public Private Partnership over traditional Municipal Bonds?

 

  • Municipal Bonds have been, and will most likely continue to be, the primary funding mechanism for government entities, however, in recent years, many bond investors have changed their buying criteria.

  • Many will no longer purchase long-term bonds and will only purchase A+ rated bonds.

  • This severely restricts the ability of some communities to issue bonds and still achieve their goals.

 

Public Private Partnerships are one solution to that challenge. P3s may provide several advantages over traditional Municipal Bond financing:

 

  • Government can maintain quality services despite budget limitations

  • Speedy, efficient and cost effective delivery of projects

  • Better access to capital for the construction of major facilities

  • Private Partner also shares in the risks of the government project

  • Government employees typically retained & usually at equal or improved benefits

  • Introduction of Private Sector technologies into the Public Sector

 

Why choose a CCA Solution?

 

  • In addition to the benefits of a Public Private Partnership listed above, due to the funding structure, a CCA solution may also offer the following advantages not always provided by other Private Investors:

 

  1. Revenue Sharing Programs may be available for our Government Partner

  2. Voter Approval may not be required

  3. Should not affect your Credit Rating

  4. Bonding Capacity is not Impacted

  5. Deferred Payment Options available

  6. Flexible Terms up to 30 Years

  7. $1.00 Purchase Option on most Build to Suit and Sale Leaseback Projects

  8. May provide accounting advantages for our Government Partner

  9. Legal Fees typically less than with Municipal Bonds

  10. Funding typically accomplished in 30 – 90 days (average 60 days)

  11. Funds can be used to Refinance Existing Municipal Bonds

  12. Fast, Efficient, Cost Effective

 

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