INFRASTRUCTURE BANKS: INNOVATIVE FINANCING FOR TAPPED-OUT TRANSPORT BUDGETS

With limited public funding of all types, maximum value must be realized for each dollar of government spending. This is particularly true for transportation infrastructure, which is extremely expensive to fund. The paper looks at the pilot program created in the United States by the Federal Highway Administration (FHWA), the establishment of State Infrastructure Banks (SIBs) originally in ten states. The success of the SIB program is discussed, and the possibility of creating something similar in Canada is considered. Recognizing the pressure to fund infrastructure renewal, the paper looks at additional other innovative financing models.