Jake Raboy

What funds NJ infrastructure, New Jersey Transportation Infrastructure Bank

For the bridges to be built and at times repaired there has to be some kind of funding. The funding for the bridges come from two major loans,“Line of credit loan” for short term financing issued upon commencement of design. This loan is comprised of some short term capital and local aid infrastructure funds. As well as a long term loan issued upon construction completion comprised of LAIF funds and bond proceeds. 

The infrastructure bank conducts pooled financing the proceeds of which fund a portion of each borrower’s long term loan. If one or more of the participants in the pooled financing is unable or unwilling to make payments the shortfall is covered by prior repayments from other pool applicants. This includes enforcement of  I-banks remedies as a bond holder, prior repayments from participants in prior pools.

The infrastructure bank has 22 million in funds to reduce the financing costs of construction, engineering, and design and to administer loans at extremely low interest rates, the overall goal being to fix the states aging infrastructure, improve pedestrian safety, and advance the movement of people and goods. The transportation I bank will significantly reduce the cost of local transportation infrastructure by reducing the cost of financing. This will enable communities to increase the amount of projects that are funded.

 

 

Bibliography

Unit, NJDOT Web Development. “NJ Transportation Infrastructure Bank Is Open for Business.” Harassment, Intimidation & Bullying (HIB), NJ Department of Environmental Protection (NJDEP), Office of Information Resources Management (OIRM), Bureau of Geographic Information Systems (BGIS), 2018, www.state.nj.us/transportation/business/localaid/NJInfrastructureBankFund.shtm.

Release, Press. “NJ Transportation Infrastructure Bank Is Open for Business.” Cape May County Herald, 9 June 2018, www.capemaycountyherald.com/news/government/article_7e94a6f8-6bbb-11e8-8743-bf6e35727b52.html.