Repairing infrastructure in the United States would cost approximately $4.6 trillion, according to a report by the American Society of Civil Engineers.
Deferred maintenance has led to 2 trillion gallons of waste water from aging delivery systems, 20 percent of highways having poor pavement conditions, and 614,387 structurally deficient bridges.
Government funding for infrastructure had become increasingly more difficult to receive as government budgets have tightened and government bonds are attracting fewer investors.
Private investment and public-private partnerships have attempted to fill the void.
These partnerships work well since they combine long-term investment and project accountability with tailored marketing solutions.
Carlyle Group is an example of a success story. The company partnered with the state of Connecticut to renovate 23 highway service plazas, each of which received a LEED Silver certification.
The project created 375 jobs, 200 permanent, and is expected to generate $500 million for the economy.
“We see compelling infrastructure opportunities in sectors including energy, power, transportation and water,” Carlyle Group’s Glenn Youngkin said. “Our approach combines Carlyle’s deep industry and operating expertise with our 30-year history of owning and improving critical assets and businesses.”
In North America, $30 billion in infrastructure funds was raised last year. The amount of capital available to invest was $70 billion in April.