TFTT Report

The University of Pennsylvania’s Wharton School of Business recently endorsed public-private partnerships as a solution to the challenges facing America’s aging water systems.

Here are the top three takeaways Truth from the Tap wants you to know on P3s from the Knowledge@Wharton team:

1. Continued investment is needed to meet local water needs.
   Wharton cites an American Water Works Association report that estimates $1 trillion will be needed over the next 25 years to repair and expand local water systems to serve a growing population.

2. P3s help communities provide efficient and affordable water services.
   According to a Wharton report, P3s can close the current investment gap by ensuring “public and private sectors share the risks and rewards involved in building, maintaining and operating public water systems.”

3. The federal government wants to increase the use of P3s.
   Wharton highlights how the President’s 2016 budget will help promote the use of P3s in the United States. First, it includes Qualified Public Infrastructure Bonds (QPIBs) to help finance P3 projects, which removes state allocation volume caps and Alternative Minimum Tax restrictions that have made similar financing options less attractive in the past. Second, the budget establishes a new EPA Water Infrastructure and Resiliency Finance Center to provide training and resources, including for P3s, to project investors, sponsors, and interested communities.