Obama Infrastructure Stimulus

Investment boost for US infrastructure

Posted August 2009

Several decades of under-investment have brought US infrastructure assets to the end of their serviceable life.

The American Society of Civil Engineers 2009 Report Card calls for $2.2 (£1.5) trillion investment over the next 5 years, to return assets to safe, operable standards.

President Obama's stimulus plan has prompted federal support to facilitate progress.

Close-up of water running at a wastewater treatment plant

Faithful+Gould is active in the US infrastructure market, working with several major water sector clients. 

At the City of Tulare (CA) our initial remit was to challenge the process design and master plan for an industrial wastewater treatment plant dealing predominantly with dairy waste. Our services were extended to the owner's representative role, and we are currently helping the City increase the capacity of their domestic treatment facilities.

In Arizona, our program management team is delivering a $62.5 ($41.3) million upgrade to the City of Nogales' 1940s wastewater treatment plant, which uniquely treats inflows from both sides of the US and Mexican borders. Construction works are currently ahead of schedule.

Nick Harney, Faithful+Gould's Vice President for Infrastructure, comments:

‘Privatization of the UK water industry brought an interesting shift in culture. Today, clients, contractors and consultants work much more closely in integrated joint alliance teams, sharing risk and reward. This requires trust but brings huge efficiencies, realized through sharing of ideas and alignment of goals.'

The American Recovery and Reinvestment Act (ARRA) requires states to obligate monies quickly. Clients may therefore employ a design-build delivery approach to expedite projects accordingly. This approach could enable municipalities to get into construction in as quickly as 120 days from notice to proceed.

Effective prioritization of investment will be an important consideration for future infrastructure projects, especially for those clients with a large asset base.

How we can help

Our asset management team offers a flexible, transparent and auditable asset prioritization process that delivers clarity in this decision making process, across a wide range of investment types.

We provide a structured method of valuing individual projects on a consistent basis, across a wide range of business drivers including OPEX savings, serviceability and performance benefits and business alignment.

Together with our program and construction management expertise, this approach is enabling a number of our clients to optimize their investment portfolios and address topical issues such as the cost of borrowing.

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