P3s, Investment Funds Slow; Pipeline Healthy.

U.S. public-private partnership (P3) activity weakened last year, but the overall trend of increasing P3s remained strong. The southeast region, particularly Georgia, Louisiana, and Tennessee, had significant projects in the pipeline. Availability-payment P3s were more popular than revenue-risk deals. Public pension funds showed interest in investing in infrastructure, although they often had to look outside the U.S. Infrastructure fund investment dropped, but the top 100 funds raised a total of $1 trillion over five years. The U.S. lags behind other countries in infrastructure P3s due to political opposition and the availability of low-cost financing through municipal bonds. The southeast region was the most active for P3s in the U.S., with states like Louisiana, Georgia, and Tennessee turning to tolls to manage congestion and generate revenue. The U.S. has a relatively small number of states that use P3s extensively, a larger number that use them sparingly, and several states that do not use them at all. Infrastructure funds raised $112 billion last year, a 35% drop from the previous year, but the top 100 funds have raised over $1 trillion in the last five years. Transportation projects accounted for almost 50% of global P3 investment. Public pension systems, including the California Public Employee Retirement System, continued to show interest in infrastructure investing. More state legislators should be aware of the connection between the financial viability of their retirement systems and the ability to invest in infrastructure [Extracted from the article]

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