Last week I took PennDot to task for not mentioning Pennsylvania’s new public private partnership legislation when it was complaining about the lack of financing available for infrastructure projects because one of the main purposes of the act is to finance transportation projects. In this weekend’s Wall Street Journal Money magazine, there is an article “How to Buy a Toll Road,” about uber-wealthy families investing in infrastructure projects in emerging markets. It fails to mention that there are opportunities for not only wealthy families, but also hedge funds, pension funds, and private equity, to invest in infrastructure project right here in the good ole’ USA.
Pennsylvania accepts unsolicited public private partnership proposals. This means investors can approach the Commonwealth with a plan to invest in an infrastructure project. There is even a guide on how to submit a proposal. I would imagine investing in US based infrastructure projects is would be preferred because there is less risk. For example, there is real risk that an infrastructure project in an emerging country never gets completed because of civil unrest in that country, like a coup.
However, if States are serious about funding infrastructure projects with private dollars then they need to do a better job of letting those capable of investing in them that the opportunity to do so.
Wally Zimolong
Wally represents contractors (and subcontractors) and developers. His clients build and develop residential, commercial, and industrial properties nationwide. Wally enjoys working with the owners of the businesses he represents because they tend to be entrepreneurs and all around interesting people.
