As the US's bridges and roads show their age, the country's government is scrambling to attract capital and jump-start development. The need is huge. Over the next five years, an estimated $2000bn in financing will be required to fix the US's crumbling infrastructure.
Investors, attracted by the low-risk, double-digit returns associated with the infrastructure sector, are eager to participate, as are banks - despite being burned by the credit crisis and political gridlocks. In 2006 and 2007, many banks revved up their infrastructure capacity, anticipating huge expansion in this space. However, they are still waiting for this expansion - even as investor money gathers in the sidelines.
