Obama to encourage the participation of private capital in infrastructure construction

U.S. President Barack Obama, 29, said that the infrastructure for attracting foreign investment and the revitalization of the U.S. economy is crucial, the United States government to encourage private capital to participate in the infrastructure construction investment, to encourage local governments to issue bonds for the construction of infrastructure financing.

The same day Obama said in a speech in Miami, Florida, in the United States, the financial crisis hit the U.S. construction industry, the real estate recovery in the U.S. construction industry has been a significant drop in the unemployment rate, but still higher than any other industry, the new and updated infrastructure directly create jobs, an important factor in the high-speed railway, a state-of-the-art transmission network is to attract corporate investment.

In the context of the unemployment rate is still as high as 7.7%, the Obama administration attaches great importance to update infrastructure to stimulate domestic economic growth, but the government cut public spending led to limited financial resources in areas such as infrastructure. The data show that the White House since Obama took office in early 2009, the United States has more than 560,000 kilometers of highways, 9,656 km of railways and more than 20,000 bridges maintenance and update, but the task is still arduous update obsolete infrastructure of the United States.

The day of the Obama administration proposed to Congress appropriated $ 10 billion to start infrastructure bank, the bank can absorb a large amount of private sector funding, expected up can leveraging of $ 200,000,000,000 private capital to participate in the infrastructure construction. In order to maximize the mobilization of private capital participation, the infrastructure bank in the proportion of investment in any project does not exceed 50%. In recent years, Obama's Democratic administration has repeatedly made a similar proposal, but has not yet agreed to by congressional Republicans.

Obama also proposed to increase the flexibility of local governments in the field of infrastructure construction, and to encourage local governments to issue bonds to attract private sector investment in infrastructure, private capital participation in infrastructure projects can get ownership of the project, while encouraging foreign pensions and other investment institutions involved in the construction of local infrastructure in the United States.