The Build America Bureau (BAB) awarded its second and final round of Innovative Finance and Asset Concession (IFAC) grants in June. The $47 million in federal funding will go to 45 different technical assistance projects aimed at enhancing public assets and developing concession programs. The grant awards are the second and final round of the IFAC grant program, which was created by the Infrastructure Investment and Jobs Act (IIJA).
The IFAC was the result of a push by some members of Congress during the run up to the IIJA to implement or study some version of “asset recycling” here in the United States. The general concept is that many state and local governments own many under-utilized infrastructure assets. By selling operating concessions on those assets, governments can raise large amounts of capital to then deploy into developing new public works projects. A version of an asset recycling program was created by the Australian government and was successfully implemented primarily in New South Wales. That example has captured the attention of some in and around Capitol Hill, though the Australia program is no longer leasing new concessions.
The IFAC program included in the IIJA is significantly different from its Australian counterpart, however. It exclusively consists of planning grants for public sponsors to study concessions or concession programs associated with a TIFIA-eligible project.
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