Isra-Mart srl:Senator Kerry launches bi-partisan push for federal infrastructure bank

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Senator John Kerry has this week announced bipartisan legislation designed to create a federal bank capable of supporting infrastructure projects around the country, many of which would aim to reduce US carbon emissions.

The American Infrastructure Financing Authority would be a non-partisan bank offering loans and loan guarantees for project financing to help rebuild American infrastructure, senator Kerry said in a speech yesterday.

The proposal, which is backed by Texas Republican senator Kay Bailey Hutchison and Democrat senator for Virginia Mark Warner, will be officially introduced in the Building and Upgrading Infrastructure For Long-Term Development (BUILD) Act.

It will require a $10bn initial investment, said US Chamber of Commerce president and chief executive Thomas Donohue, who attended the event.

"The bill is being introduced by a coalition that is united to build America's infrastructure," senator Kerry said. "This bill is a statement not only about where we are today, but about where we need to be in the future."

Kerry lamented the state of US infrastructure, saying that experts he had spoken to predicted it would take $2 trillion to get it to an acceptable state.

"Do we stand by while China invests nine per cent of its gross domestic product, and Europe invests five per cent in infrastructure, and we barely invest two per cent?" he asked.

The bank would support a wide range of projects including building programmes for roads, bridges and highways. However, it would also play a key role in supporting the development of low-carbon infrastructure, providing project financing for water, energy and rail projects.

It will use private capital to invest in significant regional and national projects, Kerry said, adding that it would make up to $640bn available in the first 10 years of operation.

The bank is likely to be modelled on a number European development banks, such as Germany's KfW banking group, the European Investment Bank, and the UK's proposed Green Investment Bank.