U.S. infrastructure bank no quick fix

By Lisa Lambert

WASHINGTON (Reuters) - President Barack Obama will likely explain his vision for a national infrastructure bank in the detailed budget he plans to release on Thursday, but analysts warn the bank will not be a comprehensive or quick fix for the nation's road and highway problems.

In the proposed budget he released in February, Obama set aside $5 billion in fiscal year 2010 for an entity to "provide direct federal investment" and "foster coordination through state, municipal and private co-investment" in building and repairing the country's physical capital.

"To think that the National Infrastructure Bank is the solution, or anywhere close to the solution, I think is extremely over-optimistic," Robert Atkinson, chair of the National Surface Transportation Infrastructure Financing Commission, told the Reuters Infrastructure Summit on Wednesday.

In the February proposed budget, Obama presented an overview of his spending plans, including calling for the bank to receive $25.2 billion through 2019, but did not provide specifics. Budget Director Peter Orszag has said his office will give the public "full programmatic detail" on Thursday.

Based on what Atkinson's government-backed commission found last year -- that the country needs to invest $210 billion a year in infrastructure, or roughly three times its current rate -- he does not think the bank provides the answer.

"The need is so great," he said.

Many of the country's roads and bridges have fallen into disrepair over the last decade, with one Minnesota bridge collapsing over a year and a half ago, and many say that the bank could not speedily fix their conditions.

Speaking to Reuters on Monday, the House of Representatives Transportation and Infrastructure Committee Chairman James Oberstar said the bank would not be established and operational for some time to come.