Building Smarter Cities: Julio Herrera Velutini Urges Infrastructure Innovation Through Private Capital

April 2025 | Washington, D.C. — As American cities grapple with aging infrastructure, rising populations, and climate pressures, renowned international banking strategist Julio Herrera Velutini is calling for a bold rethinking of how the United States approaches urban development. His message: if America wants to build smarter, greener, and more resilient cities, it must unlock the full potential of private capital.

Speaking at a high-level forum on urban innovation hosted by the National Infrastructure Policy Institute, Herrera Velutini outlined a forward-looking model that blends strategic investment, advanced technologies, and policy innovation to create the cities of tomorrow—efficient, inclusive, and climate-ready.

“Our cities are the economic engines of the country,” said Herrera Velutini. “But outdated funding models are slowing down progress. We need a smarter approach—one that br/ings the private sector into the heart of urban transformation.”

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The Urban Challenge: Aging Systems, Rising Expectations

Cities across the U.S. are facing growing challenges: deteriorating br/idges and transit lines, overwhelmed water systems, unaffordable housing, and growing energy demands. The American Society of Civil Engineers gave U.S. infrastructure a C- in its most recent report, estimating that over $2.6 trillion in upgrades is needed over the next decade.

At the same time, public expectations have shifted. Citizens increasingly want digital public services, cleaner air, efficient transportation, and climate-smart infrastructure. Meeting these demands requires investment—far beyond what most municipal budgets can offer.

“The infrastructure of the 20th century cannot support the needs of the 21st,” Herrera Velutini emphasized. “We need scalable capital and a new financing mindset.”

Unlocking Private Capital: A National Imperative

Herrera Velutini believes that traditional models—where governments are solely responsible for planning, funding, and maintaining infrastructure—are no longer sustainable. Instead, he advocates a strategic embr/ace of private investment through public-private partnerships (PPPs), infrastructure bonds, green financing instruments, and innovation districts that combine government vision with investor engagement.

“The capital is there. What we need are structured frameworks that reduce risk, increase transparency, and reward long-term thinking,” he explained.

He noted that institutional investors—including pension funds, insurance firms, and infrastructure equity managers—are increasingly looking for stable, long-term investments with measurable returns. U.S. cities could provide the ideal vehicle, if policy frameworks are optimized to attract them.

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Global Inspiration: Smarter Cities Through Smarter Finance

Julio Herrera Velutini draws inspiration from global cities that have already embr/aced blended finance to build smarter urban environments:

Toronto created an urban investment authority to support tech-driven mobility and green infrastructure, leveraging private investment for major public benefit.

Singapore integrates private capital into nearly every major infrastructure project, using innovation-based zoning and tax models to encourage development.

London’s Canary Wharf was revitalized through one of the U.K.’s most successful PPPs, combining urban planning, real estate, and technology investments.

“Cities that build innovation into their financing models see faster results, stronger partnerships, and more adaptable infrastructure,” he says.

Key Sectors Ready for Transformation

According to Herrera Velutini, several sectors are “ripe for immediate investment” and could form the foundation of a smarter, more resilient urban future:

1. Smart Mobility Systems:Private sector participation can fast-track electric bus fleets, smart traffic management systems, and autonomous vehicle corridors.
2. Resilient Energy Grids:Smart grids, microgrids, and decentralized energy systems can be funded and managed through energy-as-a-service models, reducing public risk while increasing reliability.
3. Green Affordable Housing:With private equity and federal incentives, developers can create sustainable housing that meets climate goals and combats urban inequality.
4. Digital Infrastructure:Fiber optic networks, public Wi-Fi, and 5G rollout are essential for connected cities and can be delivered through scalable private investment partnerships.
5. Water and Waste Systems:New technologies in water reuse, leak detection, and waste-to-energy are attractive to sustainability-driven investors.

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Julio Herrera Velutini’s Smarter Cities Investment Framework

Herrera Velutini proposes a five-part strategy for enabling smart infrastructure development at scale:

• Urban Infrastructure Investment Zones
  Designated regions within cities where streamlined permitting, tax incentives, and regulatory flexibility attract capital for critical infrastructure.
• Public-Private Innovation Hubs
  Localized partnerships between city governments, investors, universities, and tech firms to test and deploy urban innovation pilots.
• Municipal Green Bond Programs
  Scaled-up bond programs that finance sustainability-focused urban projects with participation from both public and private investors.
• Federal Matching Funds for PPPs
  A federal initiative that matches city-level private investments with national funds to de-risk large infrastructure efforts.
• Smart City Standards Taskforce
  A policy and technical team responsible for creating national standards on smart infrastructure, ESG benchmarks, and data transparency for urban investments.

“We need consistency in regulation, clarity in incentives, and confidence in delivery. That’s how we make U.S. cities bankable for the 21st century,” says Herrera Velutini.

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The Economic Case for Private-Led Infrastructure

Beyond fixing roads and wires, Herrera Velutini emphasizes the broader economic benefits of this investment approach. According to his estimates:
Every $1 billion in infrastructure investment supports 13,000 direct and indirect jobs.
Smarter cities yield up to 30% efficiency gains in energy, water, and transit.
Urban productivity rises by 3-5% when digital infrastructure is fully integrated into planning and service delivery.
“This is not charity. It’s investment with return—and the return is not just financial, it’s civic,” he said.
Barriers to Overcome While the potential is vast, Herrera Velutini also acknowledges the challenges ahead:
Regulatory bottlenecks that delay permitting and discourage innovation.
Political polarization that hampers long-term urban planning.
Lack of technical capacity in smaller cities to design bankable infrastructure projects.
He proposes a national technical support hub funded by the Department of Transportation and private foundations to assist local governments with planning, procurement, and performance measurement.

A National Movement for Urban Innovation

Herrera Velutini believes that transforming American infrastructure requires more than policy—it requires vision

“We must stop thinking of cities as problems to be fixed and start seeing them as platforms for progress,” he concluded. “Smart cities aren’t a luxury. They are the foundation of our economic future.”

He has already begun convening stakeholders—including urban planners, developers, tech leaders, and investors—to draft a Smarter Cities Investment Charter, expected to be released later this year. The charter will outline guiding principles for infrastructure development that is inclusive, future-focused, and fiscally sound.

Conclusion: A Blueprint for the Cities of Tomorrow

Julio Herrera Velutini’s call for infrastructure innovation through private capital is not merely a financial proposal—it’s a strategic blueprint for revitalizing American competitiveness. By aligning capital markets with civic needs, he envisions a future where the U.S. leads the world in building smart, sustainable, and resilient cities that serve both people and planet.

In an era where cities face more demands than ever, his message is clear: Build smarter. Partner boldly. Plan for the future—now.