The Public/Public Partnership created as a result of Act 44 differs from Privatization in several key respects:
- Privatization would require new legislation to be passed to enable a Public/Private Partnership (P3). The Public/Public Partnership of the Pennsylvania Turnpike Commission (PTC) and the Pennsylvania Department of Transportation (PennDOT) has already been enacted by the legislature with the passage of Act 44 of 2007.
- The PTC raises funds only as needed over time. This avoids placing a huge debt burden on the Turnpike upfront.
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The PTC accesses the tax-exempt municipal bond market for most of its borrowing needs. This is a much lower-cost source of funding than taxable debt or even higher cost private equity. Other states (NJ, IL, TX) have considered privatization but opted for municipal bond approaches for this very reason.
- The PTC, unlike a private firm, has no profit motive. It operates for the benefit of the Commonwealth, not an outside investor group.
 What is P3?
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