Denver City Council approved on Tuesday a $1.8 billion public-private partnership project to redesign the Jeppesen Terminal of Denver International Airport (DEN), the latest airport to use this financing structure for redevelopment.
P3s, which are more commonly used in Europe, Australia and Canada, are typically made up of a private consortium of companies to design, build and finance a project while ownership remains with the public entity.
The contract, which is for the next 34 years, is the largest in the city’s history, according to DEN.
Some U.S. airports are showing increased interest in using P3s to fund larger-scale projects, said Kurt Forsgren, an infrastructure analyst for S&P Global Ratings. New York’s LaGuardia Airport is using a $4 billion P3 structure, working with LaGuardia Gateway Partners to renovate the airport’s decrepit central terminal.
«It"™s all driven by alternative ways of delivering complicated projects and additional consideration of the full life-cycle costs of these projects,» Forsgren said…
