Infrastructure sticker shock: Financing costs more than building it

Written on June 5th, 2014 in politics Comments Off

Published on Intrepid Report, by Ellen Brown, June 4, 2014.

Funding infrastructure through bonds doubles the price or worse. Costs can be cut in half by funding through the state’s own bank.

“The numbers are big. There is sticker shock,” said Jason Peltier, deputy manager of the Westlands Water District, describing Governor Jerry Brown’s plan to build two massive water tunnels through the California Delta. “But consider your other scenarios. How much more groundwater can we pump?”  

Whether the tunnels are the best way to get water to the Delta is controversial, but the issue here is the cost. The tunnels were billed to voters as a $25 billion project. However, that estimate omitted interest and fees. Construction itself is estimated at a relatively modest $18 billion. But financing through bonds issued at 5% for 30 years adds $24–40 billion to the tab. Another $9 billion will go to wetlands restoration, monitoring and other costs, bringing the grand total to $51–67 billion—three or four times the cost of construction.

A general rule for government bonds is that they double the cost of projects, once interest has been paid … //

… (full long text full of hyper-links).

(Ellen Brown is an attorney, founder of the Public Banking Institute, and a candidate for California State Treasurer running on a state bank platform. She is the author of twelve books, including the best-selling Web of Debt and her latest book, The Public Bank Solution, which explores successful public banking models historically and globally).

Links:

Ukraine: New President Escalates Austerity, Civil War, Popular Resistance Deepens, on The Bullet, Socialist Project’s E-Bulletin no 992, by Roger Annis, June 4, 2014;

GCHQ operates secret Middle East spy hub in Oman – report, on Russia Today RT, June 4, 2014;
Website GCHQ.gov.uk;

NSA blowback: Top 8 political scandals sparked by Snowden leaks, on Russia Today RT, June 3, 2014;

Continental Crucible: Workers and Unions in the Transformation of North America – a book review, on The Bullet, Socialist Project’s E-Bulletin no 991, by Chris Schenk, June 3, 2014;

Who’s in control – nation states or global corporations? on The Guardian, by Gary Younge, June 2, 2014: Around the world, calls for national autonomy have grown. Minorities are blamed but the real culprit is neoliberalism …;

Narendra Modi au pouvoir en Inde: Que fera l’Europe? dans Europe Solidaire.eu, par Jean Paul Baquiast, le 19 mai 2014;

SIRIUS DISCLOSURE:

  • The Crossing Point of Light: special DC Afternoon Workshop with Dr. Greer, Sunday June 29, 2014, Dupont Circle area, Washington DC 20009, Info e-mail;
  • Website: /about, /Docs, /Apps, plus 5 contact-emails.

The Banksters Are Now Setting Up the Crash of 2016:

Klaus Schulze with Lisa Gerrard, 109.09 min, uploaded by pfenrw, June 24, 2012.

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