California's Infrastructure May Go Private

"Gov. Arnold Schwarzenegger signaled a major push today to engage private companies in the construction and management of state and local infrastructure, adopting a strategy employed in Canada, Britain and elsewhere."

"In such partnerships, which could take a variety of formats, the state and municipalities could enter contracts allowing private companies to build and manage roads, schools, waste water treatment plants, and other projects in exchange for rent or revenue paid by consumers, such as tolls."

"The Schwarzenegger administration is contemplating a plan, probably requiring state legislation, to create a California agency to oversee state and local public-private partnerships, aides said. Modeled after one in British Columbia, it would be staffed by professional financiers and other experts who could oversee the structuring of deals by both state and local governments."

"Schwarzenegger, who championed a $42-billion infrastructure bond that voters approved last year, has said the state needs $500 billion in improvements over the next two decades to catch up and keep up with rapid population growth."