Cezary Podkul
Governments will increasingly rely on defining performance standards for PPP contracts using the social outcomes they produce, such as safety, instead of ‘micromanaging’ how those outcomes are arrived at, according to Michael Gerrard, deputy chief executive officer of Partnerships UK.
The National Surface Transportation Policy and Revenue Study Commission's Jack Schenendorf and Patrick Quinn also see congestion pricing, gas tax increases and greater regulation of public private partnerships as potential solutions to the US' infrastructure funding crisis.
President-elect Barack Obama's choice for transportation secretary could determine the level of private sector participation in public infrastructure financing, according to a presentation by David Gribbin at the California Infrastructure Summit.
The deal will be the largest yet for the infrastructure heavyweight and its first in the toll road sector after its consortium's $12.8bn bid for the Pennsylvania Turnpike expired in September.
Having just closed its third emerging markets funds on $2.9bn, the firm is still pursuing a separate infrastructure fund for the emerging markets.
In proposing to do so, it becomes the third Babcock & Brown satellite fund to take steps to internalise its management since the Sydney-based infrastructure specialist announced a strategic review of its business lines in June.
The infrastructure heavyweight will scale down its business in response to a decline in deal flow and profitability.
Subsidised 50% by the government, the projects will involve the construction, maintenance and operation of two stretches of highway along Chile's Ruta 5 and Ruta 66.
Though the significant majority of staff were not affected, the reductions reflect local market conditions and a more appropriate scale in the current market environment.
DIF, a Dutch infrastructure fund manager, is buying the additional stake in the public private partnership joint venture with Netherlands-based BAM Group through its €150m first fund, DIF PPP.