PPEA Legislation
How new legislation promotes partnerships
The passage of the public/private Education Facilities and Infrastructure Act of 2002 (PPEA) brings new options for public-sector building projects. This innovative legislation allows public entities the authority to create public/private partnerships for the development of a wide range of public-use projects.
The most common scenario enabled by PPEA is for a private entity to build the desired facility, then lease it back to the public entity. This arrangement allows a public agency to promptly build and occupy a facility without having to appropriate full construction funding. (Other scenarios made possible by PPEA include private-sector maintenance/operation of facilities.)
PPEA also allows public parties to solicit proposals for desired projects—and even to accept unsolicited proposals. This can greatly streamline governmental procurement procedures by eliminating the need for a lengthy public bidding process, burdensome allocation hearings, or referenda.
Ultimately, the PPEA gives institutions and localities far greater latitude in the initiation of public projects, in the sources of funding for those projects, and in the selection of vendors.
Virtually any public construction project can qualify for the PPEA approach including:
- schools and school stadiums
- utility and telecommunications infrastructure
- parks
- libraries
- improvements to public buildings
- jails
- and more