In a new Must C report from Citi Research, a team led by U.S. Chief Economist Andrew Hollenhorst looks at changing approaches to how U.S. infrastructure projects are funded. These projects involve large upfront commitments of capital and difficult-to-quantify returns that may be spread out over generations.
Traditionally, funding strategies have relied heavily on state and local borrowing and direct federal funding. “Natural monopolies” make it most efficient for governments to supply some infrastructure, either directly or in partnership with the private sector, and so create a single connected system rather than disjointed competing ones. Concerns about safety, the environment, security and geopolitics have also made governments critical players in infrastructure investment.
This report has been sourced from the official website of Citi and can be accessed here