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[QUOTE="cuseinchina, post: 937222, member: 3079"]
Stop with the ppp stuff which you know nothing about.  Ppp exists so you can do more infrastructure build with the same amount of public tax dollars.  Private capital participates because they expect to generate returns in excess of their cost of capital, which is lowered by the government participation with debt at the risk free rate.   Infrastructure investment companies that exclusively do Ppp tends to have large stable diversified portfolios of concessions.   The large number of projects reduces the risk and the cash flows of the portfolio are highly predictable.  As such they tend to pay out a large percentage of their earnings in dividends.  These are cash generating vehicles that tap private dollars to make money in public projects.  They are among the most secure equities you can buy so you will find them prominently held by insurance companies, endowments, and pension funds.

Sophisticated Private capital does not chase projects with bad return characteristics.
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