P3

Public-Private Partnership 
The redevelopment of LaGuardia Airport's Terminal B is being undertaken through a Public-Private Partnership (P3).

The traditional approach to funding airport projects – through government grants and passenger fees – cannot keep pace with the growth in passengers and cargo going through airports, making public-private partnerships key for successful redevelopment. LGP has made history with regards to the financial structure of the deal. Valued at $5.1 billion (including $4 billion in construction), the agreement is one of the largest public-private partnerships in the history of the United States and the largest in U.S. aviation. $2.5 billion of the capital was raised in project bonds, $1.5 billion was supplied by the Port Authority, and $200 million in equity was split between the principal shareholders of the LGP. The bonds were oversubscribed by a factor of ten, reflecting the strong interest by investors in the project.