What Value Does An Infrastructure Bank Provide?

As the concept of infrastructure banks gets increasingly bandied about (see Emanuel, Rahm and Obama, Barack), Aaron M. Renn examines what exactly they do for us that we can’t already do.

1 minute read

April 24, 2012, 11:00 AM PDT

By Jonathan Nettler @nettsj


In these times of raging public debts and low revenues, infrastructure banks have been talked about as a path to facilitate significant improvements to our failing infrastructure, a path not provided by other funding tools. Renn looks at the logic behind such funding mechanisms and whether they are, in fact, too good to be true.

He bases his analysis on five supposed areas of value associated with infrastructure banks:

  1. They might raise funds in a debt constrained environment
  2. They might be a vehicle for pools of private funds to be invested in infrastructure
  3. They might limit public risk
  4. They might promote rational prioritization of investments
  5. They might circumvent costly public contracting rules

"Unfortunately, infrastructure banks are often presented as if they are "free money" to the public. I believe this greatly misrepresents the reality. Any money invested by the bank has to be paid back. An infrastructure bank seems to be just another fancy name for borrowing money. We should probably evaluate it just like we do debt."

Sunday, April 22, 2012 in Urbanophile

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

View from inside car's driver seat while driving.

Car Designs Make it Harder to See Pedestrians

Blind spots created by thicker pillars built to withstand rollover crashes are creating dangerous conditions for people outside vehicles.

45 minutes ago - Bloomberg CityLab

Red and white "Wildfire Evacuation Route" sign on signpost.

Cal Fire Chatbot Fails to Answer Basic Questions

An AI chatbot designed to provide information about wildfires can’t answer questions about evacuation orders, among other problems.

July 10 - The Markup

Protester at Echo Park Lake, Los Angeles holding sign that says "Housing is a human right"

What Happens if Trump Kills Section 8?

The Trump admin aims to slash federal rental aid by nearly half and shift distribution to states. Experts warn this could spike homelessness and destabilize communities nationwide.

July 10 - Shelterforce Magazine

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Home and Land Services Coordinator

Appalachian Highlands Housing Partners

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA