The U.S. P3 market reached a milestone recently when the winning bidder for a large social infrastructure project submitted a financial proposal that featured a committed-price private placement financing drawn down at the start of construction. This is the first time large insurers and pension funds have been willing to fund construction of a large U.S. DBFOM project with a fixed credit spread that was competitive with other sources of funds and, in this case, that allowed the winning team to meet the city’s strict affordability limit.

WMB Heartland Justice Partners, led by Meridiam Infrastructure, was selected on Dec. 12 from three finalists to negotiate a 35-year availability-payment contract for DBFOM delivery of the Marion County Justice Center in downtown Indianapolis. WMB’s low capital cost, $408 million, won the day.