Adapting public works for private capital

Development franchises, such as build-operate-transfers (BOTs), mix public and private resources to expedite financing and construction of certain bridges, tunnels, toll highways, urban transit facilities, airports, ports, and intermodal freight transfer facilities. However, this method has been adopted much more slowly in the United States than in other countries. This article summarizes some of the reasons why the United States has not made more intensive use of this globally popular development approach. It is based on interviews with pioneers in this emerging industry, visits to development sites throughout North America, and a review of the literature documenting worldwide experience with development franchises. The article presents refinements to current practice designed to make development franchises more attractive for building tomorrow's transportation infrastructure.