5Q: Joseph Dewhirst

 / PBN PHOTO/MICHAEL SALERNO
/ PBN PHOTO/MICHAEL SALERNO

1 What is the Rhode Island Infrastructure Bank and how has its mission changed?

It is a quasi-public agency that delivers low-cost loans for high-quality projects to upgrade the state’s infrastructure. The investments create jobs while improving the environment. As the Clean Water Finance Agency, our focus was [and it remains] water, with two major programs. The clean-water program finances wastewater projects prioritized by the R.I. Department of Environmental Management. The drinking-water program finances safe-drinking-water projects prioritized by the R.I. Department of Health. The Infrastructure Bank also funds two smaller programs, administered by Rhode Island Housing, providing loans to communities for homeowners either replacing substandard septic systems or connecting to sewer lines. The cumulative water-related loans total more than $1.5 billion. [In 2015] we began developing new financing programs. Now, the road and bridge fund offers loans to municipalities for road and bridge infrastructure projects. And a new efficient-buildings fund will soon provide loans to municipalities and school districts.

2 Are programs available to commercial properties or businesses?

So far, the loan programs have targeted public entities. But soon a new product called Commercial Property Assessed Clean Energy will channel private funds to businesses for projects with deep energy savings.

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3 How does the bank save money for municipalities?

Bonds issued by the Infrastructure Bank are well-structured to minimize risk to investors. These bonds are generally rated AAA, so the interest costs are low. RIIB passes this benefit to borrowers, charging each municipality a rate of interest as much as 33 percent lower than it would pay on its own.

4 Is there enough funding to meet demand?

There’s never enough money for all proposed projects. But we target the most impactful projects by asking state partners to define priorities.

5 What else is coming in 2016?

Early in 2016, we’ll issue a $50 million clean-water bond, supporting loans of $74 million to nine communities. In the road and bridges program, we’ll make loans of $17 million to eight communities. n

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