US Midterms: Key P3 markets flipped

Some of the most active states in the P3 market have seen a flip to Democratic governors in the Midterm elections; federal congress split

Democratic candidate and billionaire entrepreneur JB Pritzker has defeated incumbent Governor Bruce Rauner in Illinois.

Under Rauner, Illinois has been actively looking at alternative delivery models for transportation and other challenges, but efforts to pass enabling legislation have been hampered in Springfield - although at the municipal level Chicago has emerged as a champion of leveraging private finance.

Meanwhile, Democrat Gretchen Whitmer has been elected governor of Michigan, defeating Republican state Attorney General Bill Schuette, who was seeking to succeed fellow Republican Rick Snyder.

During Snyder’s term in Michigan the state has emerged as a stalwart  in the P3 market, with the state and counties looking to the model for various sectors and challenges. The state has also introduced governance measures to identify priority projects, and has procured wide-ranging P3 advisory services.

The I-75 Modernization Project P3 is set to close by the end of the month.

Elsewhere in the Midwest, Wisconsin and Kansas have also been flipped, with the Democrats taking both gubernatorial elections. Maine, Nevada and New Mexico have also  been flipped to the Democrats.

The elections have seen the Republicans lose control of the House of Representatives, meaning the federal government is now split between a Republican president, Republican Senate (where the Republicans strengthened their position) and a Democratic House.

It means that the Democrats could now work to hamper Trump's legislative plans. While infrastructure is one of the precious few areas where both sides broadly agree, the increasingly bitter divide between the two parties could make it difficult for any agreements to be reached, particularly as some Democrats are uneasy about the widespread use of private finance to deliver infrastructure.