Macquarie Capital Head of Americas Infrastructure Rob Kupchak says there is $US156bn1 in untapped private capital that could be deployed to begin work on the US infrastructure backlog and improve the operating efficiency of existing assets.
He says the challenge for investors is communicating the benefits that funding models such as public private partnerships can bring to sectors like transport and roads which have traditionally relied on public funding.
“What the private sector is really good at is innovation, improving operations and managing risk," Kupchak says. “This leads to projects that are more commercially viable, more efficient and developed more quickly with the customer experience top of mind."
The Trump administration is considering how to boost the nation's infrastructure, speed up approvals for projects and fund essential services.
Macquarie Capital Government Advisory and Affairs Manager Geoff Segal says the private sector can work in partnership with governments to meet community infrastructure needs.
He says the timing is right for greater use of public private partnerships, asset recycling and direct user fees, such as tolling, which have been adopted throughout the world to build and manage infrastructure projects and make them viable.
"In the past, state and local governments have been able to rely on the federal government to carry a larger share of the funding task," he says. "That is changing, and this change is going to precipitate the need for private investment.