Five banks have committed $125 million to an investment fund known as the Western Kentucky Infrastructure fund (WKIF) to support public-private partnerships (P3) in Kentucky.
The participating banks — Field & Main Bank, Inc.; The Paducah Bank & Trust Co.; Security Bank & Trust Co.; Stock Yards Bank & Trust Co.; and Traditional Bank Inc. — have set Jake Schirmer, manager of the Commonwealth Infrastructure Fund, as manager of this fund as well. Funding will be available to both state and local-level projects, providing debt financing for projects such as repair to roads, bridges, water and sewer systems, as well as social infrastructure projects like student housing, treatment centers, and charter schools.
“For communities in the western part of the state, the Western Kentucky Infrastructure Fund will play a vital role in expanding infrastructure projects. Having community banks supporting their communities will be crucial in our efforts to rebuild our infrastructure,” Mardie Herndon, president and COO of The Paducah Bank & Trust Co, said.
These efforts follow the signing of new P3 legislation in Kentucky in 2016, which broadened the state’s P3 laws. It created a process for local governments to partner with private firms for financing and building of capital projects. Revenue generated from such projects is generally the primary source of funding used to repay loaned capital for construction.
“There is a need for the private sector to work with the public as a creative vehicle to rebuild Kentucky. Loans made by the Western Kentucky Infrastructure Fund will spur economic development and create jobs,” Dale Sights, president of Field & Main Bank, said.