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Chicago Partner Greg Hummel was quoted Jan. 8 by regarding the infrastructure and public-private partnership proposal recently announced by Gary Cohn, the chief economic adviser to President Donald Trump. Hummel, who focuses on real estate and public finance projects, defines public-private partnerships, also called PPP, P3 or 3P, as long-term cooperative arrangements between entities in the public and private sectors. “There’s an element of risk sharing at the equity level that goes beyond what you have in a typical public debt, infrastructure or offer,” Hummel said. “There is the potential for certain earnings as a result of that equity investment.” To protect the public and taxpayers’ interests, Hummel offered the following advice: “Make sure you’re getting true value for money by evaluating the P3 offering against the project conventionally financed with public debt. Make sure that the provider of the public works and or the services has a lot of skill and experience and recognize that P3 is not for all projects.” Hummel supports P3 infrastructure deals that tap into the technological advancement of private market expertise, such as adding the smart dimension to different systems. “It’s not replacing what’s worn out with exactly the same thing but doing more in terms of understanding the real opportunities that are presented by micro grids in the delivery of power, sustainability as it relates to form water management, and the potential use of renewable energy sources,” he said. Click here to read the full article; subscription may be required.

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