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Making P3 Projects Happen

Our Approach
Why CrInSol: Opportunity in the Marketplace

Combining the ability to innovate, unwavering focus on commercial aspects and efficiencies of the private sector with public sector’s sole charter of achieving societal outcome that is consistent with the stated government policy and initiatives through Public Private Partnership (P3) project is an age old idea. Thus the added value due the partnership, as opposed to a simple sum of their parts, is the essence of the Public Private Partnership. In other words, in a Public Private Partnership, at least theoretically, each party does what it is best at and takes the risk that it is best positioned to take i.e. consistent with their goals and objective. This seemingly no-brainer solution is fraught with a myriad of problems as demonstrated by more failures than successes (defined by financial closure) in P3 projects in the United States. There is clearly an opportunity for a new P3 firm that derives its success from project success, as opposed to almost all other firms in P3 space, except concessionaires and contractors, whose business model is independent of whether or not potential P3 projects ever move forward. 
We have been involved in a large number of Transportation P3s in both successful and failed projects throughout United States. We realize that while success can be achieved only through a comprehensive team work and cooperative relationships between public and private sectors, stakeholders and elected officials, failures happen primarily due to inadequate handling of the complex interplay between above fundamental parties in a P3 project. We have formed CrInSol to develop creative solutions from identification of potential P3 projects to development and execution of strategies that appropriately addresses above interactions and results in a win-win scenario for above players. Other factors such as processes requirements and organizational and incentive structures are also partially responsible for a long and bumpy ride to a P3 success. However, CrInSol’s focus is to develop solutions within above constraints.
Transportation P3 is a fairly large industry in the United States with very little success to show in recent years. A staggering number of consultants and advisors are available in almost all states, especially in those where P3s are yet to happen or has happened at most at the rate of one project per year. In other words, a majority of P3 professionals have been supporting large publicly funded P3 programs that are yet to produce projects. While the reasons behind this is highly debatable, ranging from bad project selection to incentive structure to a lack of a comprehensive view, the opportunity for a new firm whose focus is not on advisory services but on developing solutions that “make a project work” for all the above players could not have been stronger. CrInSol is thus formed to “develop P3 projects that work” from technical, financial and political perspective.


Our Approach to Develop P3 Projects

We view project development in two phases. The first phase consists entirely of a thorough but higher level due diligence of the three fundamental drivers of the project and interactions among them. We firmly believe that the P3 success emerges from highly complex interactions among the three fundamental drivers of the project described above. Therefore, a sound understanding of not only each driver but also that of interactions among them is a pre-requisite to “making a P3 project happen”. Our pre-development process basically quantifies those drivers and interactions among them in a manner that helps us frame project opportunities and threats in a P3 framework. On the surface, our process may appear same as adopted in one form or other in many states and by many owners. However, our business model combined with our expertise present a fundamentally different approach than the existing ones. From a financial perspective, we do pre-development phase at our own risk and hence there is a strong incentive for us to not go through a process for the sake of process itself and complete it as quickly and as judiciously as possible. In other words, the efficiency and creativity of private sector is harnessed to their fullest extent during this phase. From our expertise perspective, our principals have demonstrated unparalleled success in their individual areas of expertise which consists of the three fundamental drivers of a successful P3 project (not by a coincidence). Thus, CrInSol brings the expertise to “make a P3 project happen” and is based on a business model that incentivizes “making a P3 project happen”. 

Partnership with concessionaires and investors is the key to a competitive proposal. After completing the pre-development we form a core team which may include direct investor, concessionaire and construction partner. The exact team at this point is obviously dependent upon project requirements and characteristics but a common theme among all team members is that they all are vested in the project success and derive financial benefit only if project achieves financial closure. CrInSol’s role is to provide both leadership and assistance to the team in a detailed analysis of the project that is required to make a final Go-NoGo decision on the project. We work with the owner to develop a roadmap to unsolicited proposal development and submission.