When infrastructure is properly financed, planned, and prioritised the economic and social benefits always outweigh the initial costs.
But during the current challenging economic climate securing the funding required for these projects has never been more difficult. At the same time with new power stations urgently required, and projects such as high speed rail supported by the main political parties, securing the capital to ensure timely delivery has never been more important.
The Institution of Civil Engineers believes that there is a strong case for a National Infrastructure Investment Bank (NIIB).
What is needed is a source of long term financing that supports projects that will strengthen UK competitiveness and help with the transition to a low carbon economy. A National Infrastructure Investment Bank (NIIB), initially capitalised by government and then able to use the government’s AAA rating to raise funds on international markets can meet this need. The projects to which a NIIB lent would create valuable assets, further underpinning the bank’s creditworthiness. We also believe that the presence of a vigorous NIIB, will help hold down the cost of capital across all infrastructure sectors.
You can read the ICE’s policy paper proposing the National Infrastructure Investment Bank in full.