Presentation made by Elaine Buckberg, US Treasury Department, at the Symposium on Governance of Infrastructure held at the OECD, Paris, on 29 February 2016
3. Long-term Vision
Cost-effective investment in our
Nation's infrastructure is critical to
creating jobs, expanding
opportunity, fostering economic
growth, and improving the global
competitiveness of the United States.
President Barack Obama
Presidential Memorandum, July 17, 2014
5. Need long-term vision:
• Stable underlying source of funds
• Predictable funding
• Political will
U.S.:
• Longstanding gas tax is raising less revenue
• Federal funding subject to Congressional approval
• State/local funding closely tied to tax revenues due to
balanced budget requirements
Predictable Funding
6. Need:
• Upfront financing of investment
• Ability to maintain investment through economic
cycles
Access to Financing
7. • Municipal bond market:
$3.7 trillion debt outstanding
• Work to do: Diversify sources
• Attract non-taxable debt investors:
• America Fast Forward Bonds proposal
• Attract equity investors: P3s
• Enable issuance of tax-exempt debt in projects with
private sector equity participation:
• Existing Private Activity Bonds (PABs) program
• Qualified Public Infrastructure Bonds (QPIBs) proposal
Access to Financing
US
8. Making the Right Projects Happen
Best practices for all decision-making levels of
government:
• Cost-benefit analysis
• Prioritized project selection
U.S.:
• Federal highway funds granted to states by formula
• States make spending decisions
• TIFIA: Financing for large transportation projects
• TIGER: Competitive grant program
9. Effective Execution
Best practices for all decision-making levels of
government:
• Reasonable permitting process
• Appropriate safeguards
• Predictable timelines
• Government staff with financial and technical expertise
• Framework to determine procurement approach
• Value-for-money
• Competitive bidding
• Transparency