Governments Should Enhance Best Practices for Infrastructure Investments

2- best practices

Governments have historically used bond financings, custom lease structures, special tax districts, tax incentives and credits, as well as usage fees, to facilitate funding of infrastructure projects. They have also increasingly turning to private capital to supplement or replace public financing.  Multiple drivers are catalyzing increased private sector involvement. They include, among others, (i) funding shortfalls at each level of government caused by limits on tax increases and available debt; (ii) divestitures of existing infrastructure assets to raise capital for new investments; (iii) initiatives to obtain private sector management and technical expertise to improve service efficiency; (iv) enactments of favorable PPP legislation by federal and state governments; and (v) availability of debt and equity financing from private investment sources. Government has a huge role to catalyze infrastructure development that goes far beyond traditional projects and financing.

 

 

Author: Sameer_Jain

Partner. Sameer Jain is founder of FinTech ActiveAllocator.com, the world’s first portal that seamlessly integrates traditional, illiquid and alternative investments within portfolios. Prior to this he was Chief Economist & Managing Director at AR Capital. Before that he headed Investment Content & Strategy at UBS Alternative Investments. At UBS, he served as a non-voting member of the Wealth Management Research investment committee, and as a capital allocator was responsible for all illiquid investing including fund manager selection and due diligence across the platform. Prior to UBS he headed product development & investment research at Citigroup Alternative Investments that managed over $75 billion of alternative investments across hedge funds, managed futures, private equity, credit structures, infrastructure and real estate. Here he led a team that developed proprietary models for portfolio strategy and asset allocation with alternative investments, provided investment support and research to pension plans, sovereign wealth funds, endowments as well as internal clients including Citi Private Bank. Before this he was with Cambridge Alternative Investments and SunGard (System Access) where he travelled to over 80 countries for work across Europe, Asia, Middle-East and Africa. He has written over 30 academic and practitioner articles on alternative investments with thousands of downloads at SSRN, presented at over a hundred industry conferences and has coauthored a book, Active Equity Management. Mr. Jain has multiple degrees in engineering, management, public administration and policy and is a graduate of Massachusetts Institute of Technology and Harvard University. He is a recipient of the Alfred Sloan Fellowship and subsequently was a Fellow of Public Policy and Management at the Harvard Kennedy School of Government for a year. He holds Series 7 and 66 securities licenses.

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