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Private Capital Can Saves America’s Crumbling Roads and Bridges
- Private capital funding can be a solution for America's dire infrastructure needs, which the government is in no position to fill due to a severe shortfall of funding to replace the crumbling bridges in the US.
- Traditional tax-funded infrastructure repair has not been sufficient as taxpayer revenues fail to meet the infrastructure needs of communities.
- Institutional private infrastructure funds have more than $4.5 trillion under management, which can fund and manage the cost of building or repairing bridges, schools and other public infrastructure elements while collecting returns via tolls, lease agreements and cost efficiencies.
- Private infrastructure funding can eliminate the financial burden on taxpayers and bring the private sector's cutting-edge knowledge, experience, and project management skills to bear on the construction of the asset itself.
- Deep-pocketed investors in private infrastructure funding can partner with those who have the know-how to build projects on time and on budget, while incentivizing private infrastructure groups to get the project up and running faster to ensure investors make a return as soon as possible.
- Governmental leaders must tell citizens the truth: the money doesn’t exist for these repairs and time is running out to get them done. They should encourage citizens to make informed decisions about the future of their infrastructure.
- Private infrastructure brings together deep-pocketed investors and those with the know-how to build projects on time and on budget, using the same steel suppliers and union laborers the government would use but without the time delays and cost escalation that regularly plague government-led infrastructure projects.
- Passing the cost and the risk entirely over to private infrastructure groups means these groups are incentivized to get the project up and running faster. Every day that a highway remains under construction or a power plant is not completed is one more day that their investors aren’t making a return.
- Governmental leaders should consider private infrastructure funding as a solution, which is unencumbered by many of the structures governments put on themselves, instead of relying on tax-funded infrastructure repair, which has proven insufficient.
- Citizens need to be informed about the hard truths and make informed decisions about the future of their infrastructure, whether they opt to use private infrastructure funds or not.
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