Today, the President will deliver remarks at the
The President's visit and announcement today are a part of the Administration's continued push to highlight the importance of investing in our nation's infrastructure so that we can build on the progress our economy is making by creating jobs and expanding opportunity for all hardworking Americans. The steps announced today continue the momentum the President has made using his executive authority -- his pen and phone -- to invest in modernizing our infrastructure, including speeding up the permitting process for major infrastructure projects to create more jobs.
The President supports the steps that
Investing in a 21st century American infrastructure is an important part of the President's plan to build on the progress our economy is making by creating jobs and expanding opportunity for all hardworking Americans. Modern and efficient infrastructure -- whether moving goods to our harbors and ports or connecting people to services or gigabits to our offices and homes -- helps small businesses to expand, manufacturers to export, investors to bring jobs to our shores, and lowers prices for goods and services for American families.
The President has been very clear that we need to do more to improve our infrastructure in order to create jobs, provide certainty to states and communities, help American businesses, and grow our economy. He has put forth a long-term proposal that would do just that and pay for it by closing unfair tax loopholes and making commonsense reforms to our business tax system, while providing the certainty of reliable federal funding to states and communities.
And while the President is encouraged that
That is why today, the President will sign a Presidential Memorandum to launch the Build America Investment Initiative, a government-wide initiative to increase infrastructure investment and economic growth by engaging with state and local governments and private sector investors to encourage collaboration, expand the market for public-private partnerships (PPPs) and put federal credit programs to greater use. Starting with the transportation sector, this initiative will harness the potential of private capital to complement government funding.
* As part of the Initiative, the Administration is launching the Build America Transportation Investment Center: Housed at the
* Infrastructure Investment Summit: As part of the drive toward innovative infrastructure solutions and to highlight the opportunities for infrastructure investment, the
Build America Transportation Investment Center: Housed at the
* 'Navigator Service' for the Public and Private Sector: Through hands-on support, advice and expertise, the center will make DOT credit programs more understandable and accessible to states and local governments and leverage both public and private funding to support ambitious projects. The center will also provide private sector developers and infrastructure investors with tools and resources to identify and execute successful PPPs.
* Improved Access to DOT Credit Programs: The center will encourage awareness and efficient use of existing resources at the Department, including the Transportation Infrastructure Finance and Innovation Act (TIFIA) program. TIFIA provides long-term, flexible financing to highway and transit projects that feature dedicated revenue sources. Each dollar of Federal TIFIA funding can support about
* Technical Assistance: The center will share best practices from states that are leading the way on private investment to states that have not yet adopted innovative financing strategies, encouraging a more robust national market. Today, the top six states for PPPs have nearly two-thirds the value of all U.S. PPP projects. Twenty states have no PPPs in transportation at all. The center will provide technical assistance to help remove barriers to ensure the public and private sector can come together to complete projects that make sense. Through a website and on-demand technical assistance, the center will provide information about DOT credit programs, case studies of successful projects and examples of deal structures, standard operating procedures for PPP projects and analytical toolkits. It will also help interested investors better understand how DOT credit and grant programs can be used together to support project development.
* Information to Reduce Uncertainty and Delays: The center will work in partnership with the interagency Infrastructure Permitting Improvement center to provide visibility for local and state governments, project sponsors and investors on the permitting process.
Case Studies and Additional Background
The Build America Investment Initiative taps into the opportunity to increase the pipeline of effective public-private-partnerships and other innovative financing mechanisms:
* High Demand: Institutional investors, both domestic and international, recognize the strength of our economy and want to invest in America. In 2013, the U.S. was the top destination for foreign direct investment with over
* Proven Approaches: Some states and communities have established successful PPPs and have developed strong institutional knowledge of how these projects are best structured and managed. Expanding that know-how to other states has the potential to increase the flow of capital by tens of billions of dollars over the next few years. Today, for example, the top five states in PPPs have nearly twice the per-capita value of projects as the next 20 best states -- and if those states caught up, it could mean up to
Building on Models of Success: Some states and localities across the country have developed successful track records utilizing PPPs and other innovative financing approaches for infrastructure projects.
The FasTracks Eagle project in
The Eagle project is using a "design-build-finance-operate-maintain" contract under a 34-year concession.
THE GROW AMERICA ACT
* In spring 2014,
* The Administration's proposal is funded by supplementing current revenues with
* The proposal also contains a series of legislative proposals to improve the return on transportation spending and improve safety, including a title on improving project delivery, and the federal permitting and regulatory review process.
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