By BILL KENDIG | AIDEA
April 21, 2026 – Alaskans are rightly skeptical of government programs that promise a lot and deliver little. We expect public institutions entrusted with taxpayer‑backed assets to justify themselves through results, not rhetoric.
For nearly 60 years, the Alaska Industrial Development and Export Authority (AIDEA) has met that test by operating with discipline, leveraging private capital, and delivering measurable returns.
AIDEA was created in 1967 to solve a specific problem: many projects essential to Alaska’s economy are too large, remote, or capital‑intensive for conventional financing alone. AIDEA’s mission is to facilitate development, not pick winners, without becoming a burden on the State treasury.
Unlike most government entities, AIDEA is financially self‑sustaining and does not rely on general fund appropriations. Its expenses are paid from revenues generated by its investments. When those investments perform well, AIDEA returns money to the State as dividends — hundreds of millions of dollars over the past several decades –helping fund essential services without raising taxes.
Dividends matter, but AIDEA’s core purpose is building and financing infrastructure that helps private enterprise succeed in Alaska.
In Northwest Alaska, the DeLong Mountain Transportation System is a clear example. AIDEA financed and owns the industrial road and port that support the Red Dog Mine, one of the world’s largest zinc operations. By lowering upfront infrastructure barriers, AIDEA enabled private investment that produced decades of jobs, wages, royalties, and tax revenue shared by local communities, Alaska Native corporations, and the State.
In Southeast, AIDEA’s investment in Alaska Ship & Drydock in Ketchikan preserved a strategic industrial asset, kept maritime repair work in Alaska, and supported family‑wage jobs. Ship repair may not grab headlines, but it is essential capability for a durable economy.
AIDEA also targets practical energy outcomes. The Snettisham Hydroelectric Project supplies reliable, renewable power for Juneau, reducing diesel use and exposure to fuel volatility. In the Interior, AIDEA has helped advance the Interior Energy Project, bringing cleaner‑burning natural gas to Fairbanks to lower heating costs and improve winter air quality.
AIDEA also supports small and mid‑sized businesses through loan participation and revolving loan programs that partner with local banks. These tools supplement private lending where Alaska’s risk and scale can make financing difficult. From Icy Strait Point in Hoonah to healthcare, manufacturing, and logistics projects, AIDEA’s participation can help viable projects move forward.
Critically, AIDEA operates under strict guardrails. Projects must demonstrate financial viability, public benefit, and appropriate risk‑sharing with private partners. The authority is subject to legislative oversight, public board meetings, and independent audits—structures that reinforce discipline and help prevent mission creep.
Alaska’s economy depends on infrastructure: roads to resources, ports to markets, affordable energy, and financing tools that recognize Alaska is not the Lower 48. AIDEA exists to meet those needs in a way that respects taxpayers, encourages private investment, and produces measurable results.
Conservatives often argue government should do fewer things—but do the right things well. AIDEA reflects that approach: limited in scope, disciplined in execution, and focused on long‑term returns rather than short‑term politics.
After nearly six decades, AIDEA’s record is visible in infrastructure built, jobs supported, costs lowered, and dividends paid. That is what effective, pro‑growth governance can look like in Alaska.
Bill Kendig is chairman of the board for the Alaska Industrial Development and Economic Authority.
6 thoughts on “Bill Kendig: AIDEA is a proven model of disciplined, pro‑growth government”
I currently have 3 AIDEA loans and have had another 4 AIDEA loans. You would think that I would be a great supporter of this program. I am supportive but unfortunately this is a government organization. The banks and credit unions who work with them complain how hard it is to work with them. The customers, like myself, do not get treated with the respect that we feel we should get. The program is a worthwhile effort and makes the State a lot of money and keeps this money in Alaska. The arrogance of the organization is so sad. It is not just the current administration that has this attitude but had always been there since I have worked with banks on AIDEA loans. I should be the one writing letters to my legislators praising AIDEA but they have never made me feel appreciated so I don’t waste my time. Hopefully Bill will read this and change the culture. It helps to have allies in your corner.
Well. If its such a good idea then why does it choose to stay within the confines of government control instead of being Free. How much more is it stifling itself and its growth by remaining its own government dependency.
AIDEA needs to be dismantled. They are dishonest.
You really have no idea what you’re talking about do you? Do you really know anything at all because all of your comments are from someone that sounds like they’re in sixth grade.
Not the most cogent or persuasive retort Mr How Old Are You? You sign up for my Rhetoric class
You really have no idea what you’re talking about do you? Do you really know anything at all because all of your comments are from someone that sounds like they’re in sixth grade.