In our world, technology, climate and societal norms are changing at a rapid rate. Project delivery methods are no exception, facing more rapid change than ever before. These changes have the potential to provide new options for funding improvements to our nation’s infrastructure.
With the decades-old gap in public funding, alternative methods to financing these capital projects are becoming a realistic option, whether in our cities or in other critical areas, like aviation. Fortunately, there are many models of alternative funding that complement the traditional publicly funded and financed methodology, utilizing private money to allow for the creation of new and expanded infrastructure.
UTILIZING ALTERNATIVE PROJECT DELIVERY
Alternative delivery methods, like design-build finance and privately financed partnerships, require alternative funding, which is typically provided via private financing. Private financing offers options for repayments that can be based on a negotiated return on investment (ROI), not operational fees or revenues. Any excess revenue is distributed back to the public entity that controls the facility rather than the private financier. These funds can then be used for other infrastructure projects, providing a multiplier effect on initial investment dollars and becoming a springboard for additional projects.
