Private Infrastructure

Attracting more private capital within the next ten years is critical for the United States' infrastructure problems, which could reach crisis proportions, according to a key finding in Infrastructure 2008: A Global Perspective, a report published jointly by New York-based Ernst & Young LLP and ULI.

Currently, the U.S. has a US$170 billion annual funding gap for infrastructure projects, the report estimates. However, the gap is widening every year and the gap could balloon over the next few years as local and state governments experience "revenue shrink," particularly from lower property tax collections.

The report concludes that infrastructure funds -- private vehicles set up to invest in infrastructure assets -- currently hold an estimated US$400 billion in capital for investment. This, combined with broader adoption of the public/private partnership model, could alleviate much of the current strain on public coffers caused by the need for radical improvement in local, state and regional infrastructure, says the report. However, the report also questions whether the U.S. has the political will and determination to take a long term approach to the infrastructure issue.

The EY/ULI report provides a snapshot of current and planned infrastructure investment in a variety of categories across the globe, with an in-depth look at the United States, China, Japan, India, and Europe.

For more information on the report and to view a press briefing, go to ULI's webcast of the release.