Infrastructure Pro Explains What Needs To Be Fixed And How To Pay For The Project

Details of President Donald Trump's infrastructure plan are expected to be released this year, which makes the topic an area of great interest to investors. Jacqueline Hinman, the CEO of CH2M, an engineering and consulting firm, was a guest on CNBC's "Squawk Box" segment Friday to offer her expert take.

Where America's Infrastructure Stands

Hinman pointed out there are certain aspects of America's existing infrastructure, such as roads and bridges, that don't need to be rebuilt and just require some improvements. On the other hand, other infrastructure-related areas like water systems are quite old and need to be rebuilt from scratch.

"It's a combination of both maintenance, upgrades, as well as new construction that needs to happen in order to really improve our economic output and improve our quality of life," she said.

An Expert's Insight

As a 30-year veteran in the industry, she noted that the private sector can play a role in infrastructure projects where companies can achieve a revenue or return stream. Nevertheless, most infrastructure projects are conducted at municipal or state levels and are often supported by federal funding.

In fact, only two-thirds of U.S. states allows them to accept private financing for public infrastructure. This needs to be changed. She added that the most efficient path for infrastructure projects is when private and public entities (local, state and federal) work together in unison to fast-track projects.

For example, in Denver, Colorado, a nuclear decommissioning project brought together the federal government, the state government, the local government, environmental stakeholders, building trades, etc. to make the cleanup and re-use of the land happen in a 10-year timeframe rather than the original projected 50-year timeframe.

"It can happen if there is a will and a way," she concluded.

Since Inauguration Day, the Utilities SPDR (ETF) XLU is up 5.27 percent.

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