Pitfalls and Potential in P3 Infrastructure Financing
As both Ohio and Kentucky look into investing in public-private partnerships (P3’s) for the construction and operation of the new Brent Spence Bridge, other states around the country are already striking similar deals. With the decline in revenues from the gas tax, which has not been raised since 1993, is P3 the reality of future road infrastructure projects? Read more at the Atlantic Cities:
Still, he says, the fact is that private investors come to the negotiation with many things the states both need and want: quick cash, and the ability to fund projects without raising debt, and the flexibility to use limited public resources in other ways. At the end of the day there’s just too much on the line for investors to complete these deals without some reasonable safeguards for success. State pension funds across the country — the massive California Public Employees’ Retirement System notable among them — have made enormous investments in infrastructure precisely because the payoff feels sizeable yet certain.
