Saturday, August 11, 2007

Reg. the infrastructure crisis

Hello, everybody,

This is Sachi "GC" Chander, writing about the collapse of the Mississippi bridge ( the M-bridge, henceforth ). We were told by Dr. Ashwin about this when he mentioned the infrastructure crisis that has gripped America. A day after the Hindu reported the incident, the newspaper carried another interesting piece that cited official sources declaring that more than 70,000 bridges are just as structurally deficient as the M-bridge. The costs of maintenance and repair are expected to reach nearly 200 billion dollars (!) . Further statistics and comments can be read here .

http://www.hindu.com/2007/08/04/stories/2007080456111600.htm


This gives an insight into the widespread nature of this crisis. However ,less than a day after the incident, preventive measures are being taken in the preliminary form of assessing and estimating the level of risk with other structures. One has to appreciate the damage assessment as well as damage control measures taken by the nation.

3 comments:

Thejas said...

Indeed, US infrastructure is in great distress. There was a survey conducted in 2005 which gave D grade for the infrastructure. Bridges got C grade. The report had this to say on bridges -
" Bridges: C
... it will cost $9.4 billion a year for 20 years to eliminate all bridge deficiencies. Long-term underinvestment is compounded by the lack of a Federal transportation program."

for more, check these links -
http://www.msnbc.msn.com/id/7137894/
http://www.cbsnews.com/stories/2005/03/09/national/main678939.shtml

Sachi Nekkanti said...

Almost everything that we're witnessing in the civil engineering scenario is pointing to a cause-and-effect phenomenon, with results and repercussions showing effect after a span of decades. ( From a more general perspective, every phenomenon that is large scaled seems to have this lag time of decades.Case in point is global warming.)

The existence of this lag means that India should probably try to focus on long term solutions rather than make-shift ones, be it establishing infrastructure or utilising it. The way I see it, we're in for a lot of headaches if we don't think about longevity of our projects.

Mash said...

Sachi - that is why it is important to pay attention to the quality of infrastructure to ensure that it stands the test of time. In addition, periodic maintenance, assessment etc need to be undertaken. A lot of times the discussion on infrastructure projects ceases as soon as land is acquired, a project proposal is prepared, finances are raised and an economic model is worked out. Construction and implementation are equally important parts of this puzzle.
The chapter in your reader by Hudson also testifies to the poor state of current US infrastructure - a lot of which has to be replaced. The US however has awoken to this need as Thejas has demonstrated. Below is the text of a legal Bill that the US plans to introduce that demonstrates the increase in infrastructure investment in the US.

August 1, 2007

HAGEL, DODD INTRODUCE BILL TO REVITALIZE AMERICA'S INFRASTRUCTURE
The National Infrastructure Bank Act of 2007 - Would Help Make Roads,
Bridges, Transit Systems, and Water Safer and Spur Economic Growth

Responding to a looming crisis that jeopardizes the prosperity and quality
of life of all Americans, Senators Chuck Hagel, R-Neb., and Chris Dodd,
D-Conn., Chairman of the Senate Committee on Banking, Housing and Urban
Affairs, today introduced a measure to revitalize, repair, and replace
America's aging and crumbling roads, bridges, transit systems, and water
treatment facilities. Two dramatic headlines in recent weeks have
highlighted the escalating problem. Two weeks ago, an 83-year-old steam pipe
burst in midtown Manhattan, releasing asbestos laden particles and causing
widespread damage. Media reports have also recently questioned whether
contaminated drinking water near Camp Lejeune in North Carolina, may have
exposed families in the area to high levels of dangerous chemicals.

"The current infrastructure in our country is wholly inadequate to handle
the demands of a 21st Century economy. We see our ports backed-up by
expanding international trade, our rails overloaded by our increasing energy
demands and our highways hopelessly clogged by traffic. We run the risk of
being left behind by our international competitors if we do not begin to
modernize our national infrastructure. It will require a huge financial
commitment to modernize our national infrastructure. The legislation we are
introducing establishes a new system through which the federal government
can finance infrastructure projects by leveraging private and public capital
to fund large projects that are vital to our country. This legislation
provides a new model for prioritizing the building and maintenance of our
national infrastructure," Hagel said.

"The 21st century holds great promise for our nation. But you can't journey
to a brighter tomorrow by relying on yesterday's infrastructure," said Dodd.
"This measure can help rebuild our roads, bridges, transit and water
systems, improve our quality of life, and spur jobs and economic growth. By
investing today, we can minimize costs down the road and provide a brighter,
more secure future for all Americans."


According to the American Society of Civil Engineers, the current condition
of our nation's major infrastructure system earns a grade point average of
D. The average age of drinking water and wastewater systems range in age
from 50 to 100 years in age. According to the Texas Transportation
Institute, the average traveler is delayed 51.5 hours in the nation's 20
largest metropolitan areas. The delays range from 93 hours in Los Angeles to
14 hours in Pittsburgh. Combined these delays waste 1.78 billion gallons of
fuel each year and waste almost $50.3 billion in congestion costs.

The bill, the National Infrastructure Bank Act of 2007, would streamline the
process by which national infrastructure projects are targeted. It would
create an independent national bank that would identify, evaluate and help
finance infrastructure projects of substantial regional and national
significance. Infrastructure projects under the Bank's jurisdiction would
include publicly-owned mass transit systems, roads, bridges, drinking water
and wastewater systems, and housing properties.

The Dodd-Hagel legislation follows two reports released by the Center for
Strategic and International Studies (CSIS) in 2005 and 2006 that highlighted
the urgent need for a national plan and investments to improve
infrastructure needs across the nation. Felix G. Rohatyn and Senator Warren
Rudman were Co-Chairmen of the CSIS Commission on Public Infrastructure.

"Senators Dodd and Hagel do a great service to our country by introducing
the National Infrastructure Bank Act," said Rohatyn and Rudman. "This
bipartisan legislation can reverse decades of shortchanging our public
infrastructure. By investing in our future, it will increase our national
productivity and improve our standard of living."

"Last year, Senators Dodd and Hagel signed on to a set of 'Guiding
Principles for Strengthening America's Infrastructure' developed by the
Center for Strategic and International Studies (CSIS) Commission on Public
Infrastructure," said CSIS President and CEO John Hamre. "These principles
were established to recommend changes to rebuild America's decaying
infrastructure. CSIS is proud to have helped stimulate this important
initiative. The leadership of Senators Dodd and Hagel on this crucial issue
will now will help the nation ensure future productivity and growth for our
economy."


Possible Nebraska Projects that would qualify:


. Construction of the Heartland Expressway in South Dakota and Western
Nebraska (~$664 million).

. Lincoln South Beltway (~$135 million)

. Antelope Valley (in Lincoln) Waterway relocation and revitalization (~$175
million).

. Construction of the Nebraska Highway 35 project between Norfolk and Sioux
City, IA (~$300 million).

. A full expansion of I-80 to six lanes from Lincoln to Kearney (~$100
million).

. Construction of the new US-34 four-lane bridge over the Missouri river
between Bellevue, NE and Mills County, IA (~$80 million).





A summary of the legislation and a list of supporters is below:



NATIONAL INFRASTRUCTURE BANK ACT OF 2007
Senator Christopher J. Dodd and Senator Chuck Hagel

OVERVIEW

The Dodd-Hagel National Infrastructure Bank Act of 2007 is a bipartisan
measure that addresses the critical needs of our nation's major
infrastructure systems. The legislation establishes a new method through
which the Federal government can finance infrastructure projects of
substantial regional or national significance more effectively with public
and private capital.

THE PROBLEM

According to the American Society of Civil Engineers, the current condition
of our nation's major infrastructure systems earns a grade point average of
D and jeopardizes the prosperity and quality of life of all Americans.

According to the Federal Transit Administration, $21.8 billion is needed
annually over the next 20 years to maintain and improve the operational
capacity of transit systems.

According to the Department of Housing and Urban Development, there are
1.2 million units of public housing with critical capital needs totaling $18
billion.

According to the Texas Transportation Institute, the average traveler is
delayed 51.5 hours annually due to traffic and infrastructure-related
congestion in the nation's 20 largest metropolitan areas. The delays range
from 93 hours in Los Angeles to 14 hours in Pittsburgh. Combined, these
delays waste 1.78 billion gallons of fuel each year and waste almost $50.3
billion in congestion costs. Furthermore, the average delay in these
metropolitan areas has increased by almost 35.3 hours since 1982.

According to the Federal Highway Administration, $131.7 billion and
$9.4 billion is needed respectively every year over the next 20 years to
repair
deficient roads and bridges. The average age of bridges is 40 years.

According to the Environmental Protection Agency, $151 billion and $390
billion is needed respectively every year over the next 20 years to repair
obsolete drinking water and wastewater systems. Drinking water and
wastewater systems range in age from 50 to 100 years in age.

Current Federal financing methods do not adequately distribute funding
based on an infrastructure project's size, location, cost, usage, or
economic
benefit to a region or the entire nation.


THE DODD-HAGEL SOLUTION

The Dodd-Hagel legislation establishes the National Infrastructure Bank,
which as an independent entity of the government is tasked with evaluating
and financing capacity-building infrastructure projects of substantial
regional and national significance. Infrastructure projects that come under
the Bank's consideration are publicly-owned mass transit systems, housing
properties, roads, bridges, drinking water systems, and wastewater systems.

Modeled after the Federal Deposit Insurance Corporation, the Bank is led by
a five member Board of Directors, each whom are appointed by the President
and confirmed by the Senate.

The Bank's Board has flexibility to develop an organization of professional
civil service staff to carry out the Bank's authorized activities. An
Inspector General oversees the Bank's daily operations and reports on those
operations to Congress.

Infrastructure projects with a potential Federal investment of at least $75
million are brought to the Bank's attention by a project sponsor (state,
locality, tribe, infrastructure agency (e.g. transit agency), or a
consortium of these entities.

To determine a level of Federal investment, the Bank uses a sliding scale
method that incorporates conditions such as the type of infrastructure
system or systems, project location, project cost, current and projected
usage, non-Federal revenue, regional or national significance, promotion of
economic growth and community development, reduction in traffic congestion,
environmental benefits, land use policies that promote smart growth, and
mobility improvements.

Once a level of investment is determined for a project, the Bank develops a
financing package with full faith and credit from the government. The
financing package could include direct subsidies, direct loan guarantees,
long-term tax-credit general purpose bonds, and long-term tax-credit
infrastructure project specific bonds. The initial ceiling to issue bonds is
$60 billion.

The Bank is tasked to report annually to Congress on the projects it reviews
and finances. A public database is created to catalog what projects were
funded and what financing packages were provided. The Bank is also tasked to
report every three years on the economic efficacy and transparency of all
current Federal infrastructure financing methods, and how those methods
could be improved. After five years, the Government Accountability Office
would be tasked with evaluating the Bank's operations and efficacy.

The Bank does not displace existing formula grants and earmarks for
infrastructure. It targets specifically large capacity-building projects
that are not adequately served by current financing mechanisms.