[snisarenko]

That's a good point. The law can have an exception for communities that get less than 5 bids. If that happens the gov't builds the infrastructure.

[foobarian]

I don't follow. How do you propose that the gov't build the infrastructure? A: get bids, award the task to highest bidder... :)

Profitability should be automatically part of the bid. It doesn't mean the bidders pay the government, it could be the other way around too.

[snisarenko]

It would be same as the regular bidding process.

Except that the gov't picks and pays for the contract (construction), instead of the local residents.

For service and maintenance contract the gov't would subsidize the monthly fees (which are expected to bee higher than a high density city)