Build Back Better: How Can PPP Support Biden’s BBB Plan?
This whitepaper was produced by Operis, a member of IPFA.
The US Senate recently voted to move forward on President Biden’s Bipartisan Infrastructure Framework (the Framework). The Framework includes approximately $550 billion in new infrastructure spending. Some 50% plus of the investment will go to transportation & transit infrastructure, with the remaining committed to water, power, broadband, environmental remediation and resilience.
Regardless of how the infrastructure is funded or financed, Public-Private Partnerships (PPPs) should be considered as a potential delivery model. The PPP model offers several benefits including pay-for-performance, whole-life costing/budgeting and a planning process that drives the discipline of thinking through what is important from an asset performance (or user experience) perspective, typically resulting in a better overall solution.
In most States, and certainly at the country level, establishing a thriving PPP sector will require investment in the PPP enabling environment including:
– Clarity on the definition and benefits of the model is critical when seeking political, general public or other stakeholder support.
– Certainty that once launched, procurement processes will get to financial close; and
– Supportive political, policy, legal, institutional and operational frameworks.
Despite the remaining political hurdles it faces, the Biden Infrastructure Framework is exciting in the commitments made to improving and growing America’s infrastructure.
In this latest Operis whitepaper, Head of Financial Advisory North America, Carmen Wade, and Global Head of Financial Advisory, Erwan Fournis, comment on the benefits of leveraging PPPs, the political support this procurement model requires to thrive and look at the lesson learned from international jurisdictions.