A public-private partnership structure often includes an availability payment structure. For example, a college or university identifies a partner in the private sector to design, build, operate and maintain an asset for a set period of time. The higher ed institution pays a predetermined amount to the private sector partner each year to cover costs – operating costs or interest on the loan, for example. The P3 is structured in a way that allows payments to decrease if performance measures aren’t met – which incentivizes the partner to keep the facility running efficiently.

Another P3 structure can be likened to that of a toll road. In this model, the private company gets all or part of its investment in the project back via user fees – student fees that are charged as part of tuition, for example.

The FARGODOME is one instance of a public-private partnership that's mutually benefitting the university in town, North Dakota State, and the local community. Read the case study online.