Are Public–Private Transactions the Future of Infrastructure Finance?

Abstract

Demand for infrastructure in the United States continues to grow dramatically while governments at all levels struggle to balance their budgets. As a result, state and local governments are looking more to nontraditional sources of financing for their capital and operating needs. Public Private Partnerships (PPP) are financing strategies that are widely used around the world but are still relatively new in the United States. Under these agreements, state and local governments maintain ownership and control of the assets but receive financial compensation to contract with a private operator who provides operating, maintenance, and/or construction expertise for large-scale infrastructure projects.