With municipal tax revenues bruised, many state-level procurement authorities will need private financing for their infra plans. But following the COVID-19 transport paralysis, demand-risk is being reconsidered in favor of other options.
US state agencies are ready to build infrastructure once the economy normalizes again after COVID-19, but many are likely to veer away from light rails and toll roads as the foundation to their plans.
When procurements are initiated again, sources say it will make sense to invite private financing via a public-private partnerships (P3) to bridge the gap in funding and it is availability-based payment structures that may be necessary to mitigate some of the revenue loss for the private sector during the pandemic. [...]
Other articles for Inframation:
Fluor Corporation Faces Lawsuits - 12 June 2020
Saskatchewan Province Reconsiders P3s For Transport Needs - 16 March 2020
Teams Are Circling USD 1.5bn Connector DB Project In Texas - 27 February 2020