http://www.infrastructureinvestor.com/Article.aspx?aID=0&article=50073

EXCERPT:  For transportation policy observers in the US, one cannot help but admit that 2009 proved to be a difficult year for the creation of a so-called national “infrastructure bank” that would stimulate public and private investment in the US’ infrastructure.

...In the course of an hour, DeLauro and her partners laid out an ambitious proposal for a powerful, national infrastructure bank which – according to Rendell’s remarks at the event – could enable up to $500 billion of investment in the nation’s infrastructure off of a previously-proposed $60 billion in budget authority. The $60 billion would be used to provide loans, which would be combined with private capital to finance projects.

All sorts of infrastructure projects would be covered – from surface transportation to water and wastewater, “smart” electric grids, and broadband internet technology infrastructure – so long as they are big projects of national or regional importance.

To get a better understanding of what the National Infrastructure Bank would look like and how it would function, InfrastructureInvestor sat down with Governor Rendell and Ambassador Rohatyn – author of Bold Endeavours: How Our Government Built America, And Why It Must Rebuild Now – for an exclusive interview, excerpted below.

InfrastructureInvestor: The dialogue about the creation of a national infrastructure bank has been going on for about 20 years. What’s different about it this time around?

Felix Rohatyn: I think the concept that we’re talking about is more and more understood. I mean, before people had at least the excuse of not understanding. I think now they understand and I think – I think – that the press will play an important role in this in explaining this to people because it’s not an easy answer, necessarily.

We want a new vehicle that will make decisions on infrastructure spending that aren't political

Edward Rendell: It’s become apparent, because of the burgeoning deficit, that we can’t just do this with government money. Look, I was a proponent of a Federal capital budget [a proposal to set aside Federal funds for investment in large-scale infrastructure projects]. But a federal capital budget, and an infrastructure repair program, could add as much as two and a half trillion dollars to the debt. Now, I think it’s adding to the debt that American people would understand and would support to some degree, but it’s not likely because of the current political climate. Which is why you’ve got to look to private-public partnerships and the infrastructure banks . . . The second reason I think that things have changed is because President Obama, from the campaign to last year’s budget, has recognised the need for an infrastructure bank.

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