America’s aging water infrastructure needs $1 trillion in investment, creating a pipeline for public-private partnerships says a report from Moody’s Investors Service.
Complex, creditworthy projects with some funding commitment best lend themselves to P3 arrangements, the report says, but officials’ limited experience with P3 procurement and the regulatory environment present challenges. Only one P3 water project deal closed in 2016: a $923 million pipeline and water treatment plant in San Antonio, Texas.
One recommendation of the report is regional cooperation, which would increase economies of scale and pool funding commitments.
To gain a better understanding of P3s for water structure, you can download the 14-page report here.