The think tank Bipartisan Policy Center says public–private partnerships are a viable way for rural communities to pursue infrastructure projects but that this approach may require strategies such as bundling projects into a package that is attractive to investors. “While robust public funding is essential to meeting these urgent needs, rural areas, like their urban counterparts, should be empowered to tap into the financial and technical expertise of the private sector to help deliver infrastructure projects more quickly and at less cost,” says the center.
In a report, the center identifies five strategies for attracting private investment. While the Trump administration sees private investment as the engine for modernization, critics say the approach has limited value for rural areas, where smaller populations make it harder to generate revenue to pay off large-scale projects. To attract investors, the report advocates approaches that include targeted funding, regional coordination, and capacity building. “Making federal and state financing programs easier for rural communities to access could help them bring financing to the table,” it says.
“Rural infrastructure — such as roads, water systems, and broadband — is in dire need of upgrades and repair, which adversely impacts rural communities’ efforts to create jobs and stimulate economic growth,” says the report. It estimates 15 percent of major rural roads are in poor condition, and one-fifth of rural bridges are either structurally deficient or functionally obsolete.