New York considers first infra fund

New York governor Andrew Cuomo has agreed a $1bn infrastructure fund to finance PPPs in the state.

In a statement to the press, he described PPPs as a key mechanism to pay for the repair and development of key economic infrastructure and said that legislative leaders have agreed to a plan to create New York's first infrastructure fund to inject over $1bn investment into infrastructure.

Accelerated state funding will leverage an additional $10bn to rebuild roads and bridges; parks, dams and flood control projects; upgrading water systems and educational facilities; and investing in energy efficient improvements to commercial and residential buildings. The fund will bid the design and construction of infrastructure projects as a single contract, reducing costs and improving construction time, said Cuomo.

Facing a state reveniew shortfall of $3.5bn for the next fiscal year, he added: "The state’s deficit is only a symptom and as governor, I want to address the illness. The essential problem we face is a struggling economy."

Cuomo has also been in discussions with labour unions about the possibility of using $2.2bn in loans from state pension funds to fund the $6bn Tappan Zee bridge project