Cezary Podkul

Private equity infrastructure funds have long used different structures than their traditional private equity peers.The asset class provides some intriguing examples of the benefits and drawbacks of some innovative models, among them the open-end fund structure.

The southern US state’s first PPP has been suspended just days before the bid submission deadline for the 12 mile toll road. Officials blame the suspension on the credit crisis and the recession, which have made it difficult for several other PPP procurements to reach completion this year.

Availability payment-based structures have a future in the United States, but not without some challenges, writes Cezary Podkul.

The Chicago Transit Authority, the second largest mass transit agency in the US, is looking for private sector partners to fund capital expenditures for an open fare payment system for its 2,222 buses and 8 subway lines. The winning bidder may be given the exclusive right to collect money from the CTA’s 500,000 annual patrons.

The payment will reimburse the Spanish toll road developer for post-award bid costs related to the procurement of the $5bn State Highway 121 project in North Central Texas. The US Department of Transportation has previously argued that Texas' procurement process for the project violated federal law.

The state’s department of transportation will not reach commercial close on the project this month due to local concerns and challenging credit market conditions. The project is to be 100% financed by a concessionaire that includes Sydney toll road developer Transurban and US engineering firm Fluor.

One of the few Indian companies raising an infrastructure fund that is not a banking conglomerate said it was aiming to raise hundreds of millions of dollars to invest in the sector.

The 25-year highways maintenance and management contract is the largest private finance initiative deal in the highways sector by a local UK government. The city hopes to sign the contract later this year and begin implementation in April 2010.

The world’s largest manager of infrastructure assets says it expects its half-year profit to grow even as Macquarie Capital, its investment banking division, continues to show weak results.

The province is implementing a number of temporary credit measures to make it easier to reach financial close for projects, many of which have faced difficulties due to tight credit markets.