International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Thursday, February 19, 2015

President Obama proposes a new P3 bond

ImagesIn an attempt to spur investment for infrastructure development, the Obama Administration proposed the creation of a new municipal bond, or Qualified Public Infrastructure Bond (QPIB).  

The QPIB is intended to broaden the scope of Public Activity Bonds (PAB) by providing financing for airports, ports, mass transit, solid waste disposal, sewer and water.  The QPIB is designed to attract new capital by permitting private-public partnerships, or P3's, to take advantage of the benefits of municipal bonds.  
Unlike PABs, "the QPIB bond program will have no expiration date, no issuance caps, and interest on these bonds will not be subject to the alternative minimum tax," the Administration stated in its recent statement.  The QPIB is expected to provide a "permanent lower cost financing tool to increase private participation in building our nation’s public infrastructure."  

For more on QPIBs read this statement and article here.

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