WASHINGTON, Aug. 16, 2011 /PRNewswire/ -- Sphere Consulting LLC released its annual report on "The Benefits of Private Investment in Infrastructure," showing that now $250 billion are available globally for investment in Public Private Partnerships, nearly a 40% increase from what was available in 2010.
The report outlines how the private sector, working with the government, could add close to 1.9 million jobs, reducing current unemployment by approximately 14%. Most of these jobs would directly benefit the struggling construction sector, which has sustained significantly higher unemployment figures than national averages during the recession.
On July 8th President Obama said, "Right now, there are over a million construction workers out of work after the housing boom went bust, just as a lot of America needs rebuilding. We connect the two by investing in rebuilding our roads and our bridges and our railways and our infrastructure."
If government investment is teamed with private investment, the approximate $250 billion of dedicated capital currently available for global infrastructure projects can create up to $625 billion for investment in the U.S. infrastructure market.
Beyond the obvious benefits to infrastructure development, private investment can free government dollars for allocation to other areas of the economy, transfer risk away from the public sector to private entities, and generate positive economic growth through job creation.
"What is important to note is that these dollars can be invested throughout the world as more and more governments are becoming increasingly competitive for partnering with private investors to enhance their infrastructure," said Addison Smith, Vice President of Sphere Consulting.
The report, "The Benefits of Private Investment in Infrastructure," was created by Sphere Consulting in coordination with Abertis, Barclays Capital, Carlyle Infrastructure Partners, Chadbourne & Parke LLP, Citi Infrastructure Investors (CII), Credit Suisse, Debevoise & Plimpton, Freshfields Bruckhaus Deringer, Fulbright & Jaworski, Greenhill & Co., Mayer Brown, McKenna Long & Aldridge LLP, Merrill Lynch, Morgan Stanley, RBC Capital Markets, Scotia Capital, and UBS.
A downloadable version is available at:
Sphere Consulting is a public affairs firm with offices in Washington, London and Buenos Aires with efforts underway throughout the globe.
SOURCE Sphere Consulting