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Effective Public-Private Partnerships (P3s) can unlock private investment capital and finance major infrastructure projects across the country. Examples of P3s that should be encouraged and improved are low-interest-rate loan programs created by the Transportation Infrastructure Finance Innovation Act (TIFIA).
Policies that encourage appropriate Public-Private Partnerships (P3s) can unleash private equity investments, improve budget certainty, accelerate project delivery, and achieve greater efficiencies and innovations in project design and construction.
There are not enough taxpayer resources to foot the entire bill for all of our nation’s infrastructure needs – and private sector capital must be tapped to help finance public infrastructure through Public-Private Partnerships (P3s).
The Roundtable supports efforts to enhance the effectiveness of existing P3 low-interest-rate loan programs – like those created under the Transportation Infrastructure Finance Innovation Act (TIFIA) – that help unlock private investment capital and finance major projects across the country.
TIFIA’s low federal interest rates and flexible repayment terms have unlocked private investment capital to finance major infrastructure projects across the country. However, the review process to obtain TIFIA support can be unduly arduous and lengthy.
The bipartisan Infrastructure Investment and Jobs Act (IIJA) enacted in 2021 will boost Public-Private Partnerships (P3s). The IIJA provisions are geared to boost P3 investments in road, transit, rail, broadband, electric grid, and carbon sequestration projects. The $1 trillion+ law supports programs that deploy taxpayer “seed money” to leverage far greater amounts of private sector investments in a variety of infrastructure asset classes.
The Department of Transportation (DOT) has begun awarding grants for recipients where local governments are improving their transportation infrastructure and promoting a range of transportation, environmental, urban planning, and housing policy goals. DOT has also launched “TIFIA 49,” which authorizes borrowing from the Transportation Infrastructure Finance and Innovation Act (TIFIA) P3 program – up to 49 percent of eligible costs for projects that meet eligibility requirements, an increase from 33 percent of eligible project costs.
The DOT’s efforts to encourage P3s through TIFIA are part of a government-wide Biden administration initiative launched in May 2022 called the Housing Supply Action Plan, which is aimed at closing the nation’s housing supply shortfall.
