The creation of a national infrastructure investment bank or similar funding mechanism has been at the centre of ICE’s campaigning for the past three years, so the Institution saw Government’s announcement this week on the creation of a Green Investment Bank (GIB) as a significant and welcome move.
ICE believes a permanent funding unit has the potential to attract the huge volumes of private capital needed to ensure the infrastructure that will help kick start economic recovery and aid the move to a low carbon economy, continues to be built.
ICE’s campaign over the years has included the launch of a Manifesto for Infrastructure, Budget submissions and briefing papers, events, meetings with MPs, the commissioning of research and the hosting of a successful infrastructure funding summit with frontbench representatives from the three main political parties, industry leaders and policy specialists. The campaign was supported by media relations activity and civil engineers were in the headlines of the Times, Daily Telegraph, the Financial Times and the Evening Standard calling for Government to establish a permanent funding mechanism.
ICE’s calls were acknowledged in the run up to the elections last year, with pledges to transform our transport, water and energy systems at the heart of the main party manifestos alongside plans on how these ambitious visions for infrastructure could be funded - from the Conservative’s ‘Green Investment Bank’ (GIB) through to the Liberal Democrat’s idea for a ‘UK Infrastructure Bank’.
This week - after months of speculation over the remit of the proposed GIB, if and when it would be have powers to borrow, whether it would operate independently of government and how much should be in the start up fund - the details of the bank were announced. Despite it being unable to borrow until 2015 and the relatively small start up fund of £3bn, ICE was positive about the proposed structure of the bank and welcomed the long awaited confirmation that an independent, permanent funding institution could become a reality.
Responding to the announcement, ICE President Peter Hansford, said: “The National Infrastructure Plan set out the need for £200bn to be invested in the nation’s infrastructure over the next 5 years and for over 70% to come from private investment. The structure of the GIB was always a real test of the Governments commitment to securing this investment and despite its inability to borrow until 2015 and the relatively small start up fund, today’s announcement finally brings the idea of an independent, permanent institution to reality.
“It is vital that momentum is now not lost and that industry and investors alike have confidence in the bank.”
Vince Cable MP also set out further detail on the bank this week, including the appointment of Sir Adrian Montague, to chair the advisory group that would be responsible for setting up the bank.
Peter commented on the appointment: “Getting the Green Investment Bank off the ground and ensuring that it emerges as a fully functioning, independent bank, requires a figure with authority and credibility with government and across the infrastructure and finance communities. Sir Adrian fits these criteria well and ICE stands ready to assist him and the advisory group.”
Going forwards ICE will be working with leading figures from across the infrastructure and finance industries to develop ideas for a range of models and funding sources to complement the GIB.