State Survey of P3 Authorizing Statutes: Arizona

Ariz. Rev. Stat. §§ 28-7701 to 7710

Summary

The law permits P3s for the construction of transportation facilities.

Surety Bond Requirements:

The DOT requires, among other things, a private partner to provide performance and payment bonds, parent company guarantees, letters of credit, or other acceptable forms of security or a combination of any of these. The penal sum or amount of the security provided may be less than 100 percent of the value of the contract based on DOT’s determination on a facility-by-facility basis of what is required to adequately protect the State.

Excerpt:

“28-7705. Public-private partnership agreements

A. In any public-private partnership or other agreement for any eligible facility under this chapter, the department may include provisions that:

14. Require a private partner to provide performance and payment bonds, parent company guarantees, letters of credit or other acceptable forms of security or a combination of these, the penal sum or amount of which may be less than one hundred percent of the value of the contract involved based on the department’s determination, made on a facility-by-facility basis, of what is required to adequately protect this state.”