Following his excellent article ‘A 10 Point Public-Private Partnership Plan for National Economic Recovery in the USA’ (link in comments) David joined us to discuss the state of the infrastructure in the USA and how the acceleration of PPP programs can provide a solution.
- For decades, investment into new build infrastructure, or maintenance of existing infrastructure, has been deferred. This policy has created a modern-day infrastructure crisis in the US
- The level of investment now required is substantial, even within the context of the US economy
- Unless projects cross state boundaries (such as roads or bridges), the States control how infrastructure is procured. States operate autonomously in relation to State issues. Therefore, there are potentially 50 different approaches to how infrastructure is procured
- Taxation is central to the American psyche. Convincing the public or politicians to invest now and take the long-term social or economic view on payback is extremely challenging
- PPPs can be a solution to the crisis, but work is required to create a unified approach and provide investors with the confidence to enter this complex market