My understanding is that since the government usually sponsors projects located in under-developed areas or less profitable sectors, the real market value of a government-sponsored project could be questionable. Is this the case?
Answers
I think your vantage point needs to be expanded. So many major projects across the country are public-private ventures. They range from projects where New York City or state partners with ground leases for projects like Moynihan Station to opportunities at ports or other quasi-public opportunities.
A bidding process is developed for this type of project to ensure transparency. Returns are generally fair.
Your understanding is correct. Unless you have a government-guaranteed return (never seen one to date), the returns will not be as claimed to me and lower than private sector investments.