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Private Sector Participation

FTA encourages the consideration of the private sector in the development and implementation of transportation improvements, following Sections 49 U.S.C. 5315 and 20013 of MAP-21. Early involvement of the private sector can bring creativity, efficiency, and capital to address complex transportation problems facing state and local governments.

There are numerous opportunities where the private sector can engage in the public transportation industry, ranging from private operators participating in the planning and transportation improvement program process to a public-private partnership, in which a private firm participates in the design, building, finance, operation, and maintenance aspects of a transit facility. Other examples of private sector participation include Joint DevelopmentCapital Leasing, and Third Party Contracting.

Private Investment Project Procedures (PIPP)

What's New

On May 30, 2018, FTA issued a Private Investment Project Procedures (PIPP) Final Rule that describes new procedures to encourage private sector involvement in public transportation projects. PIPP will help the federal government develop more effective approaches to spurring private participation and investment in project planning, development, finance, design, construction, maintenance and operations.

Under PIPP, FTA grantees can identify regulations, practices, procedures or guidance that may impede use of a public-private partnership (P3) or private investment in transit projects and seek a waiver or modification of federal requirements. The rule is intended to help grantees:

  • Accelerate project development
  • Attract private investment
  • Exercise flexibility in project management
  • Incorporate innovation
  • Improve efficiency
  • Add revenue streams

In July 2017, FTA published a Notice of Proposed Rulemaking (NPRM) for the Private Investment Project Procedures (PIPP) for public transportation capital projects in the Federal Register. 

How to Apply

An applicant may submit a request for a waiver or modification of FTA requirements to the dedicated FTA e-mail address: with a copy sent to the appropriate FTA Regional Administrator. If an application is approved, FTA will negotiate an Early Development Agreement with the project sponsor to establish the parameters of the approved application.

Updated: Friday, July 27, 2018
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