Public-private partnerships take the slow road

Reuters held an “Infrastructure Summit” in New York this week and one of the more interesting outcomes held that public-private partnerships (P3s as they say) will likely have to lower their expectations in the near future.

Even though P3s were once hailed as a solution to the shortage of infrastructure funds in state coffers, the recession, political uncertainty and a shortage of credit have proponents on the defensive. Last year the largest and most famous P3 to date, the Trans Texas Corridor, suffered an ignomious defeat. And just recently Chicago’s proposed $2.52 billion Midway Airport lease went down in flames due to lack of financing.