The three largest private infrastructure investors in the world are Brookfield (Canada), Macquarrie (Australia) and, most recently after an acquisition, BlackRock (United States). These mammoth investment corporations are spending billions to acquire all or part ownership of major infrastructure assets around the world.

(In the interest of full disclosure, I own a few shares in Brookfield and BlackRock).

Larry Fink, the head of BlackRock, believes the world is on the brink of an 'infrastructure revolution'.

These three, and other big investors such as pension funds and sovereign wealth funds, now own pipelines, electricity grids, airports, seaports, railways, water systems, cell towers, new plants that produce batteries, and a myriad of other innovative investments.

Not completely coincidentally, the US government announced the other day that its national debt hit $34 trillion dollars. Canada's public debt has been rising steadily as well; the federal debt is roughly $1.5 trillion, and the provinces and territories might add another trillion.

Governments in many countries around the world are swamped by debt. There is little hope most will return to a balanced budget soon. The sale or long-term lease of government assets is, increasingly, being seen as a viable alternative to public funding.

This, however, has risks for governments. The push several years ago into "PPPs" (public-private-partnerships) had some great successes, but also some spectacular failures.

There are potential downsides. Losing municipal ownership/control of some assets may jar local ratepayers. And, of course, you can only sell an asset once. If the municipality then squanders the revenue, it ends up with bupkus.

These huge infrastructure investors are looking for big deals with big returns. They are not likely to want to own the water pipes in West Rubber Boot, Manitoba. Municipalities may need to combine their pipelines, or grid systems, local airports, or other large regional infrastructure assets to appeal to private sector investors.

There is big money on the table. For example, Brookfield is financing 49% of a 30 billion dollar new chip factory in the US.

But, as the infrastructure revolution expands, and the needs of governments grow at the same time as new revenue sources remain bleak, there needs to be a different way of financing big projects. Especially at the municipal government level, where the property tax system is out of date, inefficient and inadequate.

If local governments are to take advantage of this enormous pool of money, they need to develop new ways of doing business. Private sector equity investments, and a new, consumption-based source of revenue such as a local sales tax, are two important areas for municipalities to explore.

There are risks to such decisions, but also potential benefits. What is certain is that smart local government officials must look at new ways of financing projects. The old way of getting big infrastructure funded through the property tax system is no longer a viable solution in the 21^st century.