There is a solution. There's a large pool of private capital available, and investors are always on the lookout for projects that offer adequate returns on investment. Billions more are available, for the right opportunities. However, unless we act now, much of this capital will be directed to projects overseas. It's estimated that Asian countries alone need a billion dollars a week to upgrade their infrastructure.
Many nations rely on private financing to modernize and make their economies more productive.
Ironically, much of this money comes from U.S. institutions. Every billion we invest creates an estimated 20,000 jobs. In the Intermodal Surface Transportation Efficiency Act of 1991, Congress took the first steps to encourage private financing. It's a solid foundation to build upon, but only a handful of projects have been realized. To maximize the potential of public-private partnerships, some additional innovative policy changes are needed.