Shea outlined the benefits and advantages of utilizing public-private partnerships to develop, finance, build, operate, and maintain wastewater and water facilities. He also cited several case studies where public-private partnerships have been successful for the public-sector, ratepayers and the environment.
"Clearly there is a demand for continued federal assistance to replace aging water infrastructure and respond to increasingly stringent water quality mandates that require communities to invest hundreds of millions of dollars in treatment technologies. Some of the more promising tools in meeting this challenge are public-private partnerships and tax exempt securities referred to as Private Activity Bonds," commented Shea.
NCPPP's testimony also endorsed the legislation's concept of promoting better fiscal management in both operations and long-term asset management, as embodied in the provision for consideration of alternative management and financing approaches, which can include public-private partnerships. Shea noted that "we endorse the approach of the proposed legislation that makes such a concept an option and does not absolutely require a community to pursue a partnership as a condition of SRF assistance. We believe that only with a voluntary assessment of the tangible and intangible benefits of a proposed partnership will be one developed and selected." Similar provisions are included in a Senate Bill S. 1961.
The testimony also endorsed the initiative of removing the current cap on Private Activity Bonds, noting that this approach was used 20 years ago to stimulate $20 billion in private investment to address the solid waste capacity crisis of that decade.
The National Council for Public-Private Partnerships is a non-profit organization of public and private sector organizations, promoting the use and best practices in use of private-sector resources and skills to meet public needs.