A hidden roadblock in public-infrastructure projects

By McKinsey & Co. 

The complete report, which was published in June 2015, can be found online at www.mckinsey.com

Synopsis: The report examines government’s declining ability to pay for infrastructure and the inability of private investors and companies to make up the difference in four case studies — privatization of an interstate highway in the United States; the building of an airport in Southern Europe; the development of a hospital in Scandinavia; and the funding of airport services in South America.

The failure to complete the projects means users and businesses miss out on improved roads, bridges and other infrastructure.

The report notes, “there are many reasons why such projects falter, but these four shared at least one: they all failed to attract suitable private-sector investors. Why? As we’ve heard from clients and le