Politics is Stalling Infrastructure Projects

Jan 23, 2012

America is missing out on needed investment because Washington can't get it's act together. Christopher Lee and Sean Medcalf of infrastructure investment firm, Highstar Capital layout the situation facing foreign investors:

Despite our fiscal and financial problems, the U.S. remains the favored destination for flight to quality capital in an increasingly interdependent and uncertain world. Long-term institutional investors everywhere — from Dutch pension funds to Asian insurance companies to U.S. college endowments — want to invest in U.S. infrastructure. To successfully attract this capital and make it work for U.S. jobs and America’s global competitiveness, we need big ideas from Washington and the will to follow through. Not more partisan posturing.

But the follow through isn't happening. The Keystone XL pipeline is the biggest stalled project in the news, but transportation bills still haven't gotten through Congress.
 
Lee and Medcalf tell Congress to stop squabbling and suggest an infrastructure bank:

Democrats and Republicans must come together to invest $250 billion in a bipartisan, independent Infrastructure Bank. Such a bank can mobilize up to three-quarters of a trillion dollars in private-sector capital (for a total of $1 trillion) to invest in U.S. job creation and economic revitalization through infrastructure, focused public-private partnerships.

The Chamber supports the concept of an infrastructure bank, expanding TIFIA—the very successful USDOT loan program for surface transportation projects, creating opportunities for private investment and public-private partnerships (PPPs) for equipping aircraft as part of the Next Generation Air Traffic Control System, and exploring opportunities for private investment and PPPs in our locks, dams, and levees.

Taking the “all of the above” approach to investment – from getting government out of the way of private sector energy investment, to passing much-needed (and delayed) federal funding bills, to inviting private sector investment in our public infrastructure and using public-private partnerships to get the most value for the money would create jobs and improve our foundation for economic competitiveness. We can't afford to miss out on that.

 

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