Blending Public and Private Capital: Innovative Financing Tools

Tackling the question “how do we pay for it?” head-on, this session demystifies the funding stack behind modern infrastructure deals. Finance experts will explain how projects can combine diverse funding sources – from private equity investment to low-interest federal loans and bonds – to close budget gaps. Attendees will get a crash course in tools like TIFIA loans (for surface transportation), WIFIA loans (for water projects), and Private Activity Bonds (PABs) that offer tax-exempt debt for P3 projects. Through real examples, the panel will show how, say, a $200 million toll road might be financed with $50 M in private equity, a $100 M TIFIA loan, and $50 M in revenue bonds – and how each piece is secured and repaid over time. The session will also delve into making projects “bankable,” covering strategies like revenue guarantees or availability payment structures that can entice investors while protecting the public interest. Infrastructure professionals will leave with a better grasp of assembling project finance packages that blend public and private capital for win-win outcomes.