The private sector has a wider role in determining which public infrastructure gets built, where, when, and how social and public priorities are met. Projects proceed only when they are 'bankable' for business interests.
"The differences between the capital, leverage, liquidity, and transparency regulations governing shadow banking intermediaries and the stricter regime governing traditional banks effectively creates a two-tier system of regulation. This arrangement can in our view create opportunities for borrowers and lenders to pursue the cheapest, least transparent sources of capital. Furthermore, we believe that it may result in creating incentives to maximise debt leverage, a process that has led, and may lead again, to systemic defaults and downgrades" - my emphasis (Global Treasury Intelligence, 2013).
Management consultants, financial advisers and lawyers have a central role in project management, preparation of outline and full business cases, the procurement process, evaluation and due diligence. This is on a significantly wider and larger scale than if the project had been financed through public investment. It has dramatically expanded consultancy and outsourcing markets.