Infrastructure Financing
Harnessing the Power of the Private Sector to Meet the Infrastructure Replacement Challenge
The Challenge
Cities, towns and utilities face a major challenge over the next several decades — replacing aging and worn-out water and wastewater infrastructure. This challenge has become more burdensome in the face of the current economic downturn. The Environmental Protection Agency (EPA), the Congressional Budget Office (CBO) and others have estimated that hundreds of billions of dollars will be needed to address this challenge.
The situation is partially a result of unfortunate timing; many different generations of water and wastewater infrastructure put in service over the past hundred-plus years are all coming to the end of their useful lives at about the same time. Though we are in an economic downturn, essential water and wastewater investments must not be put on hold.
As state, local and national debt soars, government leaders and the Americans they serve are realizing that the government does not have deep enough pockets to meet the infrastructure challenge on its own. Fortunately, the private sector can help ease budgetary burdens while continuing to fulfill public health and environmental expectations. Water and wastewater utilities have an array of tried and proven options at their disposal for creative and effective private and public-private solutions.
National Association of Water Companies (NAWC) members are utility professionals and business people who understand that utilities must take the lead in addressing this challenge and making the necessary investments. The federal government has a role, but it is neither fiscally realistic nor sound public policy for the federal government to step in and “bail-out” the water and wastewater industry.
There is no single answer. Meeting the infrastructure replacement challenge will require the private sector, utility managers, local leaders, elected officials and the federal government all doing their part carefully and responsibly.
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