NYS Comptroller Calls for Provisions If State Enacts Public-Private Partnership Projects

New York State Comptroller Thomas Di'Napoli called for strong oversight provisions in New York that will broaden the authority of the state to enter into public-private partnership projects or goes forward with private financing of public projects.

DiNapoli’s recommendations follow the release of a report examining the benefits and problems that have plagued P3 projects elsewhere in the country. In 2011, DiNapoli issued his first report on the role that public-private partnerships might play in New York’s infrastructure needs.

The governor and legislature agreed to the Infrastructure Investment Act, which authorized five state agencies and public authorities to use design-build procurement for a limited number of projects. DiNapoli urged policy makers to develop a clear understanding of the potential benefits and costs of P3 projects before taking further action.

He noted that a number of states have permitted the projects but no state has granted unilateral authority to any state entity to pursue agreements. He cautioned that the private debt and other payments associated with P3s could be costly, and that long term agreements could impact the public for decades.