P3 may be here to stay

The complexity of providing Surety Bonds to Public/Private Partnership (P3) projects is similar to the Ying and Yang of nature.  Insurance Carriers have a need to provide coverage for a proven construction related project, while understanding the operational piece of that project which, typically is the revenue driver for P3 Consortiums.

Backtrack to Europe in the late 1970’s and 1980’s, when many governments were experiencing high public debt while staring down a gloomy need for infrastructure and public works spending. So they would develop a private finance initiative (PFI).  One can arguably track this development to the United Kingdom & Australia in the 1990’s, when the PFI was a way of fusing public projects to private capital, and was largely encouraged. Continue reading…