Build America Infrastructure Investment Summit
September 9, 2014- Key Points
The U.S. Treasury Department hosted an infrastructure investment summit to discuss opportunities for private investment in public infrastructure. The Summit was co-hosted by Secretary Foxx and US Secretary of the Treasury Jack Lew. The Summit was designed to be a collaborative workshop to focus on the urgent need to invest in our country’s infrastructure, build public-private partnerships, and develop strategies for increasing investment in sectors like transportation, water, telecommunications, and energy. The Summit brought together senior White House Administration officials and more than 100 leaders from industry, finance, philanthropy, and local and state governments.
Public sector panelists included Penny Pritzker, Secretary of the Department of Commerce; Sarah Bloom Raskin, Deputy Secretary of the Department of the Treasury; Karen Dynan, Assistant Secretary for Economic Policy at the Department of the Treasury; Jeffrey Zients, White House Director of the National Economic Council and Assistant to the President for Economic Policy; Greg Nadeau, Federal Highway Administration; James Bass, Texas Department of Transportation; and Phillip Washington, Regional Transportation District in Denver.
Private sector panelists included Christopher Leslie, Macquarie Infrastructure; Jane Garvey, Meridiam Infrastructure; Nicolas Rubio, Cintra US; George Pierson, Parsons Brinckerhoff; Jim Barry, BlackRock; Marc Lipschultz, Kohlberg Kravis Roberts & Co; Laurie Mahon, Canadian Imperial Bank of Commerce; and Ed Smith Ullico Inc.
This Summit was part of the “Build America Investment Initiative” announced by President Obama in July (http://www.whitehouse.gov/the-press-office/2014/07/17/fact-sheet-building-21st-century-infrastructure-increasing-public-and-pr). This federal government-wide initiative aims to increase infrastructure investment through engagement with state and local governments and private sector investors to expand the market for P3s and put federal credit programs to greater use.
The Obama Administration and other stakeholders announced a series of investments and commitments as a result of the Summit, including a $950 million loan for the Orlando, Florida, I-4 Ultimate highway project given by the U.S. Department of Transportation. This represents the largest loan ever completed for a P3 from the Transportation Infrastructure Finance and Innovation Act program. In addition, the U.S. Department of Agriculture committed $518 million in loans for electricity infrastructure. Global investment and advisory firms, dedicated infrastructure investors, international asset managers, utilities and construction companies, and pension funds collectively committed to deploying more than $50 billion for projected private capital investment in the U.S. infrastructure market over the next five years.
The main themes surrounding the Summit included:
Financing Tools through the Build America Transportation Investment Center
The Build America Transportation Investment Center is providing a range of educational and technical assistance resources to support project sponsors who are considering PPPs and other forms of innovative finance. The Department of Treasury is releasing the first in a series of new model contract provisions to serve as a guide for highway toll concession PPP contract agreements. A subsequent guide in this series will address availability payment concession PPP contract agreements. The Department is also publishing a series of new “Project Highlights” that provide a plain-language account of how project sponsors assembled the funding and financing necessary to complete public-private partnerships.
White House Fact Sheet:
Source: Lucy Ulmer Peckar Abramson