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Infrastructure Investors Call for Action to Attract Private Capital to U.S. Infrastructure
Infrastructure Investors Call for Action to Attract Private Capital to U.S. Infrastructure

Associated Press

time14-05-2025

  • Business
  • Associated Press

Infrastructure Investors Call for Action to Attract Private Capital to U.S. Infrastructure

Global Infrastructure Investor Association urges Congress to take steps to unleash international investment in the U.S. WASHINGTON, May 14, 2025 /PRNewswire/ - International investors have called on Congress and the Trump Administration to supercharge investment in the U.S. infrastructure market by making it easier for state and local governments to access private capital for next-generation infrastructure. The Global Infrastructure Investor Association (GIIA) today released Building a New Foundation for U.S Infrastructure, outlining key Calls to Action (CTAs) for the U.S. Congress and Trump Administration to address critical infrastructure investing challenges. The White Paper identifies a series of recommendations that could unlock a greater role for the private sector in achieving the Administration's policy priorities. The focus on issues such as energy dominance and permitting reform is encouraging for investors, but there are near-term headwinds. GIIA's latest Pulse Survey of global infrastructure investors shows the U.S. behind other countries in terms of attractiveness for investment. European markets, including Spain, Germany, and the Nordics, have all risen in attractiveness as investors consider locations in which to invest in energy and transportation infrastructure. Jon Phillips, CEO of GIIA, says: 'The U.S. market remains a huge opportunity for investors. But its over-reliance on public debt to pay for infrastructure, and obstacles like permits that take years to approve, are holding it back.' 'The U.S. has a $3.7 trillion infrastructure funding gap, which cannot be closed without the private sector taking a greater role. This Administration and this Congress have an opportunity to make the U.S. the top destination for private investment, helping to deliver its policy agendas on energy security, artificial intelligence infrastructure, and 21st century transportation.' GIIA Offers Solutions to Provide Americans with Better Infrastructure GIIA's White Paper Building a New Foundation for U.S. Infrastructure outlines key calls to action to improve investor confidence in the U.S.: 'Most public spending on infrastructure is facilitated by state and local governments,' says Jon Phillips. 'However, around half of all U.S. states have limited or no legislation that enables P3s. Making P3s possible and carrying out inventories of existing assets to better manage costs, would encourage private investors and save taxpayer dollars.' GIIA and its members developed the White Paper in partnership with Sullivan & Cromwell LLP. Everyone Agrees Americans Deserve Better GIIA's call for Congress to act is further supported by the American Society of Civil Engineers' recent 'C' grade given to U.S. infrastructure, which underlines the urgent need for investment. 'Private ownership, public-private partnerships and the use of private sector skills and experience can all help to usher in a new Golden Age of American infrastructure,' says Jon Phillips, CEO, GIIA. By international comparisons, GIIA members are underinvested in the U.S. market, with U.S. assets under management representing just 17 percent of their $2 trillion global portfolio. This imbalance offers an opportunity for the U.S. to attract private capital and rapidly improve the performance of its infrastructure, creating jobs and increasing productivity across the country. Methodology: The latest GIIA Pulse Survey of global infrastructure investors reflects responses from investors with more than $850 billion in global infrastructure assets under management. The survey is conducted by Alvarez & Marsal on behalf of the Global Infrastructure Investor Association. About the Global Infrastructure Investor Association (GIIA) GIIA was established in 2016 to improve engagement between investors, politicians, policymakers, and regulators and increase much-needed investment in infrastructure. Today, it represents the world's leading infrastructure investors and advisors, who collectively represent more than USD 2 trillion of infrastructure assets under management across nearly 70 countries. Some 120 member companies are now investing in or advising on the smart, sustainable, and innovative infrastructure needed for communities and economies to thrive. GIIA's Pulse Survey of its members is conducted every six months and assesses the comparative attractiveness of the world's biggest infrastructure investment markets in North America, Europe, and Australasia. View original content: SOURCE Global Infrastructure Investor Association

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