One old-time financing method could give budget-squeezed governmental agencies needed capital flexibility to immediately pay for infrastructure repairs—but the surety industry, contractors and lenders would have to modify their business models first, says broker executive Geoff Heekin.
Heekin, the Chicago-based managing director of the construction-services group at Aon Risk Solutions, notes the American Civil Engineers Society estimates the cost of needed U.S. infrastructure repairs at $2.2 trillion.
To finance those repairs, the public and private sectors likely must form a partnership—known as the P3 model, Heekin says. Although it has been in use for hundreds of years, the model has become popular in other regions worldwide since the mid-1980s, he adds.
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