The document discusses the state of aging U.S. infrastructure and opportunities for private investment growth through public-private partnerships. It notes that an estimated $2.2 trillion is needed over 5 years for infrastructure improvements, while only $975 billion is expected from government funding, leaving a $1.2 trillion gap that could be filled by private capital through partnerships. Several factors are driving increased interest in infrastructure investing, including an Obama stimulus package and the need to address critical sectors like roads and bridges that received poor grades in a recent infrastructure report.
Financing The New Economy New America Heartland Bankdroby
The document proposes the creation of the Heartland Development Bank, a $10-25 billion source of financing for infrastructure projects in America's Heartland regions. It would serve as a lead lender to leverage private and public co-investment for economically significant projects. Modeled after development banks like the IDB, it would obtain capital from state and federal governments, private investors, and regional organizations to fund things like transportation, renewable energy, and advanced manufacturing that current federal resources cannot fully support alone. The goal is to capitalize on emerging economic opportunities in the Heartland through strategic public and private infrastructure investment.
2-2016 - Tackling the Infrastructure DeficitShane Skelton
The US faces a large infrastructure deficit, estimated at $3.6 trillion needed by 2020. The Highway Trust Fund, which funds domestic highway projects through a gas tax, faces a growing shortfall as maintenance costs outpace tax revenues. The EB-5 immigrant investor program has potential to help fund infrastructure by drawing $7.35 billion in overseas investment from 2010-2014. However, current rules prohibit using EB-5 for public infrastructure due to risk requirements. Allowing EB-5 funding of public projects like highways could help address the infrastructure funding gap at no cost to taxpayers.
Financing the development of Lebanon's power sectorJonas Feller
Lebanon faces a severe energy crisis. The needs to finance the development of its energy sector. Although reforms remain key, financing is an obstacle. A mix of public and private investment as well as ODA is planned to raise $5 billion. Innovative financing models can play a key role in this. SWFs, mainly from Arab GCC countries, can become a source of development. Diaspora bonds could form a significant resource for development financing. However, for the potential to be unleashed, an end of the political paralysis is needed. Increased accountability and transparency would increase overall FDI and accelerate processes.
The document discusses financing options for wastewater infrastructure in the United States. It estimates that $271 billion will be needed over the next 5 years to maintain and improve wastewater systems. Current government spending has flatlined while costs are rising. Alternative options discussed include public-private partnerships, decentralized distribution systems, increased state revolving fund grants, the WIFIA loan program, and adjusting policies around private activity bonds and infrastructure trusts. The largest nutrient recovery plant in the world is highlighted at the Stickney Water Reclamation Plant in Illinois.
Since the financial crisis, asset management companies, including some private equity firms and hedge funds, have become the backers of choice for huge, multiyear infrastructure development efforts like this one. Following on the heels of Blackstone’s success, many of the world’s largest private investment firms have begun to view these projects — mostly involving basic services like energy, transit, and water, but also medical and educational facilities — as an attractive channel for investment-grade credit. J.P. Morgan, Allianz Global Investors, BlackRock, and KKR are among the asset managers pouring hundreds of millions of dollars into capital projects in both the operating and construction phases. Pension funds have also begun to invest, finding that they can hire the expertise themselves instead of paying fees to asset managers. This unlikely romance between private asset management and infrastructure development could become the critical factor enabling industrial society to keep pace with the ever-growing needs of billions of people around the world.
Many of these global infrastructure investments have traditionally been the province of major commercial banks (U.S. projects tended to be funded by municipal bonds). The banks viewed these investments as desirable because the returns they offered were generally higher than those from sovereign or corporate debt. But the global banking collapse changed the investment landscape. When the dust settled from the crash and money began to flow again around the world, the banks were left with very different rules of engagement. Increased capital-to-debt requirements forced them to clean up their loan books, and tighter controls on derivatives and other proprietary trading activities limited their ability to invest widely. Seeking more liquidity and wanting to simplify their portfolios, many banks pulled out of infrastructure investments, which are generally long-term instruments and complex to manage.
Transportation Directions: Where Are We Heading? (Jack Basso) - ULI Fall Meet...Virtual ULI
Authorization of the next surface transportation bill has
languished in Congress. Learn about prospects for a
breakthrough and how states are dealing with continued
uncertainty and planning for a future with diminished federal
resources.
Public Private Partnerships - State of the Market and the Future of P3'sJonathan Hunt
This document discusses public-private partnerships (P3s) for infrastructure projects in the United States. It notes that America's infrastructure received a poor grade and an estimated $4.6 trillion is needed for repairs by 2025. P3s are growing in popularity as a way to efficiently finance and deliver infrastructure projects. However, the US still has a large funding gap for infrastructure needs across many sectors like transportation, water, and schools. The Trump administration aims to address this through proposals to expand funding programs that support P3s like TIFIA and private activity bonds.
Creating An International Climate Finance SystemCGC CGC
The document discusses the need for an International Green Bank (IGB), also known as the Global Investment Trust for Clean Energy, to help mobilize $100 billion per year in climate finance and $500 billion in annual private investments for clean energy projects in developing countries. It argues that while multilateral development banks will play a role, they have limitations that require a new institution focused solely on providing low-cost, long-term financing to lower energy costs and attract more private investment globally for clean energy at scale. The IGB would work to complement existing sources and help overcome political and market barriers to mobilizing financing needed to address climate change.
Financing The New Economy New America Heartland Bankdroby
The document proposes the creation of the Heartland Development Bank, a $10-25 billion source of financing for infrastructure projects in America's Heartland regions. It would serve as a lead lender to leverage private and public co-investment for economically significant projects. Modeled after development banks like the IDB, it would obtain capital from state and federal governments, private investors, and regional organizations to fund things like transportation, renewable energy, and advanced manufacturing that current federal resources cannot fully support alone. The goal is to capitalize on emerging economic opportunities in the Heartland through strategic public and private infrastructure investment.
2-2016 - Tackling the Infrastructure DeficitShane Skelton
The US faces a large infrastructure deficit, estimated at $3.6 trillion needed by 2020. The Highway Trust Fund, which funds domestic highway projects through a gas tax, faces a growing shortfall as maintenance costs outpace tax revenues. The EB-5 immigrant investor program has potential to help fund infrastructure by drawing $7.35 billion in overseas investment from 2010-2014. However, current rules prohibit using EB-5 for public infrastructure due to risk requirements. Allowing EB-5 funding of public projects like highways could help address the infrastructure funding gap at no cost to taxpayers.
Financing the development of Lebanon's power sectorJonas Feller
Lebanon faces a severe energy crisis. The needs to finance the development of its energy sector. Although reforms remain key, financing is an obstacle. A mix of public and private investment as well as ODA is planned to raise $5 billion. Innovative financing models can play a key role in this. SWFs, mainly from Arab GCC countries, can become a source of development. Diaspora bonds could form a significant resource for development financing. However, for the potential to be unleashed, an end of the political paralysis is needed. Increased accountability and transparency would increase overall FDI and accelerate processes.
The document discusses financing options for wastewater infrastructure in the United States. It estimates that $271 billion will be needed over the next 5 years to maintain and improve wastewater systems. Current government spending has flatlined while costs are rising. Alternative options discussed include public-private partnerships, decentralized distribution systems, increased state revolving fund grants, the WIFIA loan program, and adjusting policies around private activity bonds and infrastructure trusts. The largest nutrient recovery plant in the world is highlighted at the Stickney Water Reclamation Plant in Illinois.
Since the financial crisis, asset management companies, including some private equity firms and hedge funds, have become the backers of choice for huge, multiyear infrastructure development efforts like this one. Following on the heels of Blackstone’s success, many of the world’s largest private investment firms have begun to view these projects — mostly involving basic services like energy, transit, and water, but also medical and educational facilities — as an attractive channel for investment-grade credit. J.P. Morgan, Allianz Global Investors, BlackRock, and KKR are among the asset managers pouring hundreds of millions of dollars into capital projects in both the operating and construction phases. Pension funds have also begun to invest, finding that they can hire the expertise themselves instead of paying fees to asset managers. This unlikely romance between private asset management and infrastructure development could become the critical factor enabling industrial society to keep pace with the ever-growing needs of billions of people around the world.
Many of these global infrastructure investments have traditionally been the province of major commercial banks (U.S. projects tended to be funded by municipal bonds). The banks viewed these investments as desirable because the returns they offered were generally higher than those from sovereign or corporate debt. But the global banking collapse changed the investment landscape. When the dust settled from the crash and money began to flow again around the world, the banks were left with very different rules of engagement. Increased capital-to-debt requirements forced them to clean up their loan books, and tighter controls on derivatives and other proprietary trading activities limited their ability to invest widely. Seeking more liquidity and wanting to simplify their portfolios, many banks pulled out of infrastructure investments, which are generally long-term instruments and complex to manage.
Transportation Directions: Where Are We Heading? (Jack Basso) - ULI Fall Meet...Virtual ULI
Authorization of the next surface transportation bill has
languished in Congress. Learn about prospects for a
breakthrough and how states are dealing with continued
uncertainty and planning for a future with diminished federal
resources.
Public Private Partnerships - State of the Market and the Future of P3'sJonathan Hunt
This document discusses public-private partnerships (P3s) for infrastructure projects in the United States. It notes that America's infrastructure received a poor grade and an estimated $4.6 trillion is needed for repairs by 2025. P3s are growing in popularity as a way to efficiently finance and deliver infrastructure projects. However, the US still has a large funding gap for infrastructure needs across many sectors like transportation, water, and schools. The Trump administration aims to address this through proposals to expand funding programs that support P3s like TIFIA and private activity bonds.
Creating An International Climate Finance SystemCGC CGC
The document discusses the need for an International Green Bank (IGB), also known as the Global Investment Trust for Clean Energy, to help mobilize $100 billion per year in climate finance and $500 billion in annual private investments for clean energy projects in developing countries. It argues that while multilateral development banks will play a role, they have limitations that require a new institution focused solely on providing low-cost, long-term financing to lower energy costs and attract more private investment globally for clean energy at scale. The IGB would work to complement existing sources and help overcome political and market barriers to mobilizing financing needed to address climate change.
Investing in Infrastructure – Combining Responsibility with ReturnsRedington
This document summarizes an annual conference on investing in infrastructure for pension funds. It discusses why infrastructure is an attractive investment class, noting it can provide high quality, long-dated returns linked to inflation. It outlines factors to consider when investing, such as investment structures and specific asset risk/return profiles. Examples of infrastructure assets that provide stable long-term returns, like social housing and traditional projects, are described. The document emphasizes how infrastructure can help pension funds achieve their funding targets if accessed through the proper investment vehicles and structures.
India's infrastructure sector has struggled with decades of underinvestment and dysfunction, leaving the country with poor transportation networks and unreliable power grids that have slowed economic growth. While private investment and reforms began in the 1990s, success has been mixed with infrastructure ranked poorly compared to countries like China. A key issue is the chronic electricity shortage, with widespread power outages affecting hundreds of millions. India also faces funding shortfalls and challenges attracting foreign investment to develop its estimated $1 trillion needed for infrastructure projects and support continued urbanization and economic growth.
The document discusses public-private partnerships (PPP) for infrastructure development in ASEAN member states. It notes that while PPP is increasingly seen as an alternative to traditional financing, there are still many challenges to its utilization, especially in less developed ASEAN countries. The key issues discussed include misunderstandings around the roles of financing versus funding in PPP projects, differences in economic development levels across ASEAN states, and the need for simpler "lite PPP" models for smaller infrastructure projects. The document argues for a better understanding of PPP as one financing option among others, and consideration of each country's capabilities and project characteristics when determining the appropriate model.
Iraq\'s power crisis, and the need to re-engage the private sector (smartly) to address the problem. Oped piece published in Middle East Economic Survey February 2012.
This document discusses financing options for sustainable energy solutions in Africa. It notes Africa faces large energy deficits and high costs of power production. The annual financing gap for Africa's power sector is estimated at $23 billion. Public finance sources that could help close this gap include domestic taxation, official development assistance, emerging donors from countries like China, and innovative financing from carbon markets, aviation/maritime taxes, and financial transaction taxes. Private investment will also be important but returns are currently low, so public-private partnerships are encouraged.
India aspires to achieve double digit economic growth in order to lift vast sections of its population out of poverty while at the same time creating a modern, diversified industrial and services base. One of the most formidable challenges it faces is that of an infrastructure deficit which is reinforced by the scarcity of funds to create new infrastructure. Sporadic and confused legislative and administrative changes have ensured that far from adequate investments are being made in the power sector in India. This lack of legislative and administrative clarity had led to a rapidly growing deficit in India’s ever-increasing demands for energy (especially that for electricity), thus seriously hampering the long-term growth of the economy.
Analyzes the pernicious Plan and non-Plan divide and how it is ruinous for our national capital assets. The illogicality of this divide is brought out with a palliative suggestion.
India faces significant infrastructure challenges due to economic and population growth that demands huge investments. The Congress 2009 manifesto outlined plans to invest over $200 billion in infrastructure over two five-year plans from 2010-2012 and 2012-2017. However, the biggest hurdle is not a lack of available funds but a lack of viable and properly planned projects. For the five-year period from 2007-2012, India is estimated to miss infrastructure investment targets by 25-30% due to issues like shoddy workmanship, design deficiencies, idle resources, and compromises on safety in public works projects. Problems also stem from a lack of competition among developers and contractors.
Global Money Management _II_Article SamplesAmrita Sareen
This document discusses the potential for increased investment in U.S. infrastructure by institutional investors like pension funds. While infrastructure investments could provide stable long-term returns to match pension liabilities, commitments from investors to rebuild America's infrastructure have so far been limited. One challenge is the lack of a consistent regulatory framework and definitions for public-private partnerships (PPPs) in the U.S., unlike countries like Canada and Australia where PPP markets are more mature. The document suggests that pooled investments and efforts to reduce transaction costs, like those undertaken by the West Coast Infrastructure Exchange, could help attract more private investment to rebuild critical smaller-scale infrastructure projects in the U.S.
Public private partnerships - the case of lebanon first ppp - pierre el-hnoudPierre Hnoud
This document discusses Lebanon's need for public-private partnerships (PPPs) to address major infrastructure gaps, particularly in the power sector. It notes that power demand exceeds supply by 23% and costs the government $1.5 billion annually in subsidies. A proposed solution is a 1500-2500 MW independent power plant (IPP) under a PPP scheme. Key risks like political and economic instability would be borne by the government, while private partners would take on execution risks in constructing and operating the plant. The next steps proposed are hiring an advisor, finalizing PPP laws, establishing a PPP unit, continuing awareness efforts, and gaining private sector investment interest.
This document discusses sectoral infrastructure development in India. It notes that infrastructure investment plays an important role in economic growth and development. Large investments are planned for various infrastructure sectors like roads, ports, railways, and airports to support India's growing economy. Public-private partnerships are seen as key to funding these infrastructure improvements. The regulatory environment is also being reformed and liberalized to encourage greater private and foreign investment in India's infrastructure development.
The document discusses 8 proposals for improving and financing infrastructure in the United States: 1) Create a national infrastructure bank, 2) Make TIGER grants permanent, 3) Expand existing financing tools like TIFIA, 4) Privatize surface infrastructure, seaports and airports, 5) Promote public-private partnerships, 6) Remove hurdles to privatization, 7) Allow tolling of existing interstate highways, 8) Get the federal government out of the way and give more control to states. For each proposal the document provides a brief overview and notes some support and opposition.
US India Infrastructure And Energy Opportunities - IMaCS Virtus ReportIVG Partners
The document discusses investment opportunities in India's infrastructure and energy sectors such as roads, ports, urban development, and electricity. It notes that the government plans to invest $500 billion in these sectors over the next five years, creating opportunities for US and European companies in areas like road construction, port development, equipment supply, and power generation and transmission projects. Major investment is needed to fund projects in roads, urban infrastructure, and increasing electricity capacity.
Liberia faces significant challenges in increasing access to electricity for its population. Currently, only 10% of the population has access and electricity is only provided in the capital city of Monrovia. To meet targets for increasing access, the report recommends that Liberia 1) develop policies and strategies to attract private investment in electricity generation, 2) establish effective regulatory bodies to oversee the energy sector, and 3) structure bankable power generation projects that multilateral development banks and private investors can finance. This will help Liberia develop sustainable and affordable electricity access across the country.
Kyrgyzstan has significant potential for renewable energy like hydropower, but currently only 1.1% of its energy comes from renewable sources other than large hydropower plants. A 2009 law established feed-in tariffs to encourage private investment in renewable energy, but implementation has been slow and tariffs remain below estimated costs. Studies show renewable energy costs in Kyrgyzstan of $0.19-0.32/kWh, while current electricity tariffs are only about $0.1/kWh.
Rhode Island has a high percentage of structurally deficient bridges, with 22.7% rated as such in 2014. Federal funding is restricted for states that have over 10% deficient bridges, limiting Rhode Island's ability to use funds for temporary repairs. At the current rate of spending, the deficiency rating will worsen to 47% of bridges in 10 years. The state proposed tolls on trucks through the RhodeWorks program to fund $500 million in bridge repairs, which could allow the state to meet the federal threshold 7 years earlier than projected and save $1 billion. However, the tolling proposal stalled in the legislature due to opposition from trucking companies.
The document discusses the establishment of revolving loan programs in North Carolina to promote energy efficiency and renewable energy projects for local governments, giving them the authority to fund such programs using federal grants and general revenues and setting loan conditions. It also describes how legislation was passed in 2008 and 2009 that expanded the ability of local governments to use contractual assessments to finance critical infrastructure projects, which came to include permanent energy improvements.
Jamieson: Alternative Finance and Delivery for Water ProjectsPaul Blanchard
Jill Jamieson presented on leveraging alternative finance and delivery structures for water resource projects. She discussed the global infrastructure funding deficit and America's aging infrastructure needs. Two case studies were presented: the Grand Prairie Irrigation Project, which could benefit from a public-private partnership to accelerate completion, and the Fargo-Moorhead Flood Risk Management Project, which a P3 approach would reduce costs and accelerate delivery for. The presentation concluded that P3 is becoming more common for infrastructure projects due to capital availability, though water projects have unique characteristics that require understanding to structure successful transactions.
Catalyzing Private Investment in Infrastructure in Emerging Markets and Devel...SDGsPlus
The document discusses strategies for catalyzing private investment in infrastructure projects in emerging markets and developing economies to meet growing needs. It outlines that trillions will need to be invested in infrastructure by 2050 to support population and economic growth. While private investment in infrastructure projects in developing countries reaches hundreds of billions annually, there is still a large funding gap. The World Bank aims to help expand private investment by addressing risks through facilities that provide credit enhancements, guarantees, and blended finance. This includes crowding in the roughly $70 trillion held by institutional investors like pension funds into emerging market infrastructure projects.
Investing in Infrastructure – Combining Responsibility with ReturnsRedington
This document summarizes an annual conference on investing in infrastructure for pension funds. It discusses why infrastructure is an attractive investment class, noting it can provide high quality, long-dated returns linked to inflation. It outlines factors to consider when investing, such as investment structures and specific asset risk/return profiles. Examples of infrastructure assets that provide stable long-term returns, like social housing and traditional projects, are described. The document emphasizes how infrastructure can help pension funds achieve their funding targets if accessed through the proper investment vehicles and structures.
India's infrastructure sector has struggled with decades of underinvestment and dysfunction, leaving the country with poor transportation networks and unreliable power grids that have slowed economic growth. While private investment and reforms began in the 1990s, success has been mixed with infrastructure ranked poorly compared to countries like China. A key issue is the chronic electricity shortage, with widespread power outages affecting hundreds of millions. India also faces funding shortfalls and challenges attracting foreign investment to develop its estimated $1 trillion needed for infrastructure projects and support continued urbanization and economic growth.
The document discusses public-private partnerships (PPP) for infrastructure development in ASEAN member states. It notes that while PPP is increasingly seen as an alternative to traditional financing, there are still many challenges to its utilization, especially in less developed ASEAN countries. The key issues discussed include misunderstandings around the roles of financing versus funding in PPP projects, differences in economic development levels across ASEAN states, and the need for simpler "lite PPP" models for smaller infrastructure projects. The document argues for a better understanding of PPP as one financing option among others, and consideration of each country's capabilities and project characteristics when determining the appropriate model.
Iraq\'s power crisis, and the need to re-engage the private sector (smartly) to address the problem. Oped piece published in Middle East Economic Survey February 2012.
This document discusses financing options for sustainable energy solutions in Africa. It notes Africa faces large energy deficits and high costs of power production. The annual financing gap for Africa's power sector is estimated at $23 billion. Public finance sources that could help close this gap include domestic taxation, official development assistance, emerging donors from countries like China, and innovative financing from carbon markets, aviation/maritime taxes, and financial transaction taxes. Private investment will also be important but returns are currently low, so public-private partnerships are encouraged.
India aspires to achieve double digit economic growth in order to lift vast sections of its population out of poverty while at the same time creating a modern, diversified industrial and services base. One of the most formidable challenges it faces is that of an infrastructure deficit which is reinforced by the scarcity of funds to create new infrastructure. Sporadic and confused legislative and administrative changes have ensured that far from adequate investments are being made in the power sector in India. This lack of legislative and administrative clarity had led to a rapidly growing deficit in India’s ever-increasing demands for energy (especially that for electricity), thus seriously hampering the long-term growth of the economy.
Analyzes the pernicious Plan and non-Plan divide and how it is ruinous for our national capital assets. The illogicality of this divide is brought out with a palliative suggestion.
India faces significant infrastructure challenges due to economic and population growth that demands huge investments. The Congress 2009 manifesto outlined plans to invest over $200 billion in infrastructure over two five-year plans from 2010-2012 and 2012-2017. However, the biggest hurdle is not a lack of available funds but a lack of viable and properly planned projects. For the five-year period from 2007-2012, India is estimated to miss infrastructure investment targets by 25-30% due to issues like shoddy workmanship, design deficiencies, idle resources, and compromises on safety in public works projects. Problems also stem from a lack of competition among developers and contractors.
Global Money Management _II_Article SamplesAmrita Sareen
This document discusses the potential for increased investment in U.S. infrastructure by institutional investors like pension funds. While infrastructure investments could provide stable long-term returns to match pension liabilities, commitments from investors to rebuild America's infrastructure have so far been limited. One challenge is the lack of a consistent regulatory framework and definitions for public-private partnerships (PPPs) in the U.S., unlike countries like Canada and Australia where PPP markets are more mature. The document suggests that pooled investments and efforts to reduce transaction costs, like those undertaken by the West Coast Infrastructure Exchange, could help attract more private investment to rebuild critical smaller-scale infrastructure projects in the U.S.
Public private partnerships - the case of lebanon first ppp - pierre el-hnoudPierre Hnoud
This document discusses Lebanon's need for public-private partnerships (PPPs) to address major infrastructure gaps, particularly in the power sector. It notes that power demand exceeds supply by 23% and costs the government $1.5 billion annually in subsidies. A proposed solution is a 1500-2500 MW independent power plant (IPP) under a PPP scheme. Key risks like political and economic instability would be borne by the government, while private partners would take on execution risks in constructing and operating the plant. The next steps proposed are hiring an advisor, finalizing PPP laws, establishing a PPP unit, continuing awareness efforts, and gaining private sector investment interest.
This document discusses sectoral infrastructure development in India. It notes that infrastructure investment plays an important role in economic growth and development. Large investments are planned for various infrastructure sectors like roads, ports, railways, and airports to support India's growing economy. Public-private partnerships are seen as key to funding these infrastructure improvements. The regulatory environment is also being reformed and liberalized to encourage greater private and foreign investment in India's infrastructure development.
The document discusses 8 proposals for improving and financing infrastructure in the United States: 1) Create a national infrastructure bank, 2) Make TIGER grants permanent, 3) Expand existing financing tools like TIFIA, 4) Privatize surface infrastructure, seaports and airports, 5) Promote public-private partnerships, 6) Remove hurdles to privatization, 7) Allow tolling of existing interstate highways, 8) Get the federal government out of the way and give more control to states. For each proposal the document provides a brief overview and notes some support and opposition.
US India Infrastructure And Energy Opportunities - IMaCS Virtus ReportIVG Partners
The document discusses investment opportunities in India's infrastructure and energy sectors such as roads, ports, urban development, and electricity. It notes that the government plans to invest $500 billion in these sectors over the next five years, creating opportunities for US and European companies in areas like road construction, port development, equipment supply, and power generation and transmission projects. Major investment is needed to fund projects in roads, urban infrastructure, and increasing electricity capacity.
Liberia faces significant challenges in increasing access to electricity for its population. Currently, only 10% of the population has access and electricity is only provided in the capital city of Monrovia. To meet targets for increasing access, the report recommends that Liberia 1) develop policies and strategies to attract private investment in electricity generation, 2) establish effective regulatory bodies to oversee the energy sector, and 3) structure bankable power generation projects that multilateral development banks and private investors can finance. This will help Liberia develop sustainable and affordable electricity access across the country.
Kyrgyzstan has significant potential for renewable energy like hydropower, but currently only 1.1% of its energy comes from renewable sources other than large hydropower plants. A 2009 law established feed-in tariffs to encourage private investment in renewable energy, but implementation has been slow and tariffs remain below estimated costs. Studies show renewable energy costs in Kyrgyzstan of $0.19-0.32/kWh, while current electricity tariffs are only about $0.1/kWh.
Rhode Island has a high percentage of structurally deficient bridges, with 22.7% rated as such in 2014. Federal funding is restricted for states that have over 10% deficient bridges, limiting Rhode Island's ability to use funds for temporary repairs. At the current rate of spending, the deficiency rating will worsen to 47% of bridges in 10 years. The state proposed tolls on trucks through the RhodeWorks program to fund $500 million in bridge repairs, which could allow the state to meet the federal threshold 7 years earlier than projected and save $1 billion. However, the tolling proposal stalled in the legislature due to opposition from trucking companies.
The document discusses the establishment of revolving loan programs in North Carolina to promote energy efficiency and renewable energy projects for local governments, giving them the authority to fund such programs using federal grants and general revenues and setting loan conditions. It also describes how legislation was passed in 2008 and 2009 that expanded the ability of local governments to use contractual assessments to finance critical infrastructure projects, which came to include permanent energy improvements.
Jamieson: Alternative Finance and Delivery for Water ProjectsPaul Blanchard
Jill Jamieson presented on leveraging alternative finance and delivery structures for water resource projects. She discussed the global infrastructure funding deficit and America's aging infrastructure needs. Two case studies were presented: the Grand Prairie Irrigation Project, which could benefit from a public-private partnership to accelerate completion, and the Fargo-Moorhead Flood Risk Management Project, which a P3 approach would reduce costs and accelerate delivery for. The presentation concluded that P3 is becoming more common for infrastructure projects due to capital availability, though water projects have unique characteristics that require understanding to structure successful transactions.
Catalyzing Private Investment in Infrastructure in Emerging Markets and Devel...SDGsPlus
The document discusses strategies for catalyzing private investment in infrastructure projects in emerging markets and developing economies to meet growing needs. It outlines that trillions will need to be invested in infrastructure by 2050 to support population and economic growth. While private investment in infrastructure projects in developing countries reaches hundreds of billions annually, there is still a large funding gap. The World Bank aims to help expand private investment by addressing risks through facilities that provide credit enhancements, guarantees, and blended finance. This includes crowding in the roughly $70 trillion held by institutional investors like pension funds into emerging market infrastructure projects.
Russia needs massive investments in transport infrastructure but has seen relatively little private investment through public-private partnerships (PPPs) compared to other countries. The Russian government plans to spend over $1 trillion on infrastructure by 2020, with up to 80% financed by the private sector through PPPs. However, Russia still faces significant barriers to widespread PPP implementation, including an underdeveloped legal and institutional framework and lack of PPP experience and track record. The global financial crisis has further slowed PPP activity in Russia by reducing private sector appetite for infrastructure investments.
- Costa Rica faces a growing infrastructure gap and fiscal deficit that have hampered infrastructure investment.
- A proposal is made to create a public-private taskforce to prioritize projects, secure funding from multilateral organizations, and oversee project execution to avoid delays.
- The taskforce would design a new infrastructure development plan adopting the SDGs approach to attract private investment through PPPs and close the 2.5% infrastructure investment gap.
Public-Private Partnerships - Business & Legal IssuesLou Milrad
This document discusses public-private partnerships (P3s) and provides an overview of their key aspects. It defines P3s as cooperative ventures between public and private sectors that allocate resources, risks, and rewards to best meet public needs. The document outlines various P3 models and their characteristics. It also addresses the advantages and challenges of P3s, how to allocate risks, examples of P3 experience in Canada and other countries, and generally positive public opinion of P3s.
This document analyzes global infrastructure issues and argues that the US and other countries have reached a "pivot point" requiring a long-term infrastructure strategy. It notes that aging infrastructure, population growth, and other challenges necessitate a national vision, integrated planning across different levels of government, and alternative funding models like user fees. The document advocates adopting a four-pronged approach of developing a national strategy, holistic planning, government reform, and changing how infrastructure is paid for.
This document discusses the growing need for global infrastructure investment totaling over $40 trillion by 2030. Rapid economic growth and urbanization in developing nations is straining existing infrastructure networks and necessitating massive upgrades. Developed nations also need to upgrade deteriorating infrastructure assets. The document outlines the attractive characteristics of listed infrastructure securities as an investment class to help meet this growing need, including stable cash flows, high barriers to entry, and low correlation to other asset classes.
Presentation slides from the April 9, 2020 webinar featuring state and private sector leaders discuss shovel-ready infrastructure opportunities that can create jobs and stimulate economic growth in the short-term in the U.S.
Learn more: https://www.wri.org/events/2020/04/webinar-build-back-better-shaping-us-stimulus-package
This document discusses how to meet the needs of institutional investors seeking to invest in infrastructure projects. It notes a large global infrastructure investment gap that could be filled by institutional investors. Infrastructure offers benefits such as stable cash flows, low correlation to other assets, inflation protection, and potential for absolute returns that are well-suited to the needs of institutional investors seeking long-duration assets. The document explores infrastructure by sector, stage of development, and geographic region to illustrate how risk and return profiles can be tailored. Finally, it notes that deal size, characteristics, and risk management are also important for attracting institutional infrastructure investors.
Canadian Slides: Growth Opportunities in the USAEliot Norman
The document summarizes funding and opportunities provided by the American Recovery and Reinvestment Act of 2009 (ARRA) or stimulus act. It allocates $787 billion across various sectors including energy/environment ($98B), transportation ($49B), and health care ($24.7B+$10B). The act provides substantial funding for clean energy, renewable energy projects, energy efficiency retrofits, and smart grid technologies. It discusses how European and Canadian companies can participate in stimulus projects through strategic partnerships, government contracting, and ensuring a US presence.
The document summarizes information from a presentation on social finance and affordable housing. It discusses barriers to affordable housing development, sources of public funding, and financial innovations used in other countries to increase funding for affordable housing projects, such as social impact bonds. Potential strategies proposed include establishing a limited partnership to attract private investment in supportive housing.
Bamboo Finance is a global private equity firm focused on impact investing and microfinance. It has a diversified portfolio of 38 investments across more than 20 countries. The document discusses Bamboo Finance's experience investing in off-grid solar energy companies, which is a large and growing market opportunity. Off-grid solar is well-suited for emerging markets where grid extension is challenging and renewable technology prices are decreasing. Bamboo has seen successful exits from investments in this sector, demonstrating strong growth and increased valuations for its portfolio companies.
The document discusses various sources of infrastructure financing for developing countries, including different types of public and private domestic and international finance. It addresses challenges in attracting infrastructure financing, particularly for low-income countries, and their substantial infrastructure investment needs. The document also covers topics like foreign direct investment, foreign aid, public-private partnerships, the role of multilateral development banks, and strategies for mobilizing long-term public-private infrastructure projects.
A national investment infrastructure bank {nib} presentation 1 11-11(01)Nigel Campbell
This document discusses the potential benefits of establishing a National Investment Infrastructure Bank (NIIB) in Trinidad and Tobago to facilitate public-private partnerships for infrastructure projects. It outlines examples from Canada and the UK where similar models have worked well. A NIIB could help address budget deficits, leverage available funds, and promote long-term planning. It would give greater control and transparency over projects while reducing political and financial risks.
The Infrastructure Investment and Jobs Act (IIJA)nado-web
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Null Bangalore | Pentesters Approach to AWS IAMDivyanshu
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ASCE Infrastucture Report Card
1. U.S. Aging Infrastructure
Which Sectors are Primed for Private
Investing Growth?
Date
Ken Herbert
V.P./ Partner
Business & Financial
Services
Bernice Lee
Consultant
Business & Financial
Services
June 2, 2009
3. 3
Infrastructure investing has always been a sector of interest for investors for
its stable and long-term returns
Recently, a few major factors have combined to push infrastructure
investing to the forefront:
PRIVATE CAPITAL
Public-private
partnerships are
essential to bridge the
gap between government
funding and
infrastructure need
PRIVATE CAPITAL
Public-private
partnerships are
essential to bridge the
gap between government
funding and
infrastructure need
CREDIT CRISIS
In the midst of a credit crisis,
investors are eyeing
infrastructure – a stable source
of return
CREDIT CRISIS
In the midst of a credit crisis,
investors are eyeing
infrastructure – a stable source
of return
LACK OF GOVERNMENT
FUNDING
Obama’s stimulus package
allocates $72 billion to
infrastructure
LACK OF GOVERNMENT
FUNDING
Obama’s stimulus package
allocates $72 billion to
infrastructure
AGING INFRASTRUCTURE
Current ASCE estimation of
$2.2 trillion over the next five
years is needed for
infrastructure
AGING INFRASTRUCTURE
Current ASCE estimation of
$2.2 trillion over the next five
years is needed for
infrastructure
Infrastructure Investing At-a-Glance
4. 4
Infrastructure Definition
Facilities, systems and equipment required to provide public
services and support private sector economic activity
Transportation Infrastructure, Regulated Infrastructure, Communication Infrastructure,
Social Infrastructure
Transportation Infrastructure
Bridges
Tunnels
Rails
Transit
Airports
Seaports
Regulated Infrastructure
Electricity Transmission and
Distribution
Oil and Gas Pipelines
Water
Waste Water
5. 5
China:
• Chinese government stimulus
package of $586 billion stimulus
(mainly to infrastructure, rural)
India:
• Plans to spend 8% of GDP a year
on infrastructure projects
Australia:
• Infrastructure deficit is estimated at A$20
billion
• Australia is one of the first countries to
embrace PPPs and expanding access to
private infrastructure funds
UK & Europe:
• For the EU, OECD estimates 4 trillion Euros will be
needed with the bulk for the water sector
• Estimate of 100 billion Euros of Public-Private
Partnerships (PPPs) have been entered into in UK, Italy,
Spain, Portugal, France
•UK leads the PPP market while Europe continues to
develop
Global Infrastructure Opportunity
USA:
• ASCE estimates $2.2
trillion needed over five
years for infrastructure
• Government stimulus
package allocate $72
billion for infrastructure
•Infrastructure asset
privatization is slower
compared to other
countries
Rest of World:
• Latin America will need to invest $100 billion a year for
the next 20 years for its infrastructure
•South America’s biggest infrastructure needs are roads,
bridges, waterways and ports to help lower cost of
exporting
•Africa’s infrastructure needs are estimated at $75 billion
a year with power being the greatest infrastructure
challenge
Source: ASCE, World Bank, Reuters
6. 6
$2.4
$5.2
$17.9
$34.3
$24.7
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
2004 2005 2006 2007 2008
Global Infrastructure Funds Raised
Global Infrastructure Private Equity Growth
$ in billions
In the face of the
liquidity crisis private
infrastructure funds
were able to raise
close to $25 billion
In the face of the
liquidity crisis private
infrastructure funds
were able to raise
close to $25 billion
Source: Probitas Partners
Currently 77 Infrastructure Funds are Seeking $92 Billion in Committed Capital
Four Out of The Top 10 Funds are U.S. Based – Seeking $19 Billion
7. 7
GS Infrastructure
Investment Group
GS Infrastructure
Partners II
$7.75 billion
Roads, airports, regulated gas, water &
electrical utilities
Citi Infrastructure Investors
Citi Infrastructure
Partners
$4 billion
Transport, utilities, energy, social
infrastructure
Kohlberg, Kravis Roberts
& Co.
KKR Infrastructure
Fund
$4 billion
No sector focus given but current and
past investments include: energy, waste
management
JP Morgan Asset
Management
JP Morgan
Infrastructure
Investments Fund
$3.1 billion
Bridges, tunnels, toll roads; pipelines,
energy transmission and distribution;
water and waste water systems;
airports, seaports; rail; contracted power
generation
Alinda Capital Partners
LLC
Alinda Infrastructure
Fund II
$3 billion
Roads, bridges and tunnels; airports,
ports and rail; water supply and
wastewater treatment; gas
transportation, storage and distribution;
power generation and electric
transmission; and utility services for
residential, commercial and industrial
customers
Morgan Stanley
Infrastructure Partners
Morgan Stanley
Infrastructure Fund
$1.4 billion
Transportation, energy and utilities,
communications, social infrastructure
A Sample of U.S. Based Infrastructure Funds
Fund Manager Fund Size Sector Interest
9. 9
FACTORS
AIDING
Independence of
infrastructure
assets from
business cycle risk
Independence of
infrastructure
assets from
business cycle risk
Stimulus
package by U.S.
Government
Stimulus
package by U.S.
Government
Pension funds
ideally matched
for infrastructure
investing
Pension funds
ideally matched
for infrastructure
investing
States are cash-
starved
-heightened need
for private
investment
States are cash-
starved
-heightened need
for private
investment
U.S. PRIVATE EQUITY INFRASTRUCTURE INVESTINGU.S. PRIVATE EQUITY INFRASTRUCTURE INVESTING
Aging U.S.
infrastructure
Aging U.S.
infrastructure
Market Forces Driving Infrastructure Investing
The Strong Market Dynamics Will Push Growth in Infrastructure Investing
A Growth Rate of 14-18% is anticipated
10. 10
U.S. Infrastructure Funding Need by Sector
Other includes: Parks & Schools
Source: ASCE
$ in billions
$1.2 trillion over 5 Years is Needed via Private Capital
Aviation D
Bridges C
Dams D
Drinking Water D-
Energy D+
Hazardous Waste D
Inland Waterways D-
Levees D-
Rail C-
Roads D-
Solid Waste C+
Transit D
Waste Water D-
Overall D
2009 ASCE U.S.
Infrastructure Report Card
11. 11
$72 Billion Stimulus Package Designated for Infrastructure
U.S. Government Stimulus Package
Source: Committee on Appropriations Summary
13. 13
Public – Private Partnerships
$2.2 trillion
Estimated Amount Needed
For U.S. Infrastructure
Improvements Over Five
Years
$2.2 trillion
Estimated Amount Needed
For U.S. Infrastructure
Improvements Over Five
Years
$975 billion
U.S. Government Funding of
Infrastructure Need (Actual
Spend plus Stimulus Package)
$975 billion
U.S. Government Funding of
Infrastructure Need (Actual
Spend plus Stimulus Package)
$1.2 trillion
Significant Gap in Funding
$1.2 trillion
Significant Gap in Funding
Public – Private Partnerships
(PPP)
Public – Private Partnerships
(PPP)
PPPs have the greatest advantage to tap private
capital.
14. 14
Public – Private Partnerships
The 2010 administration budget provides a National Infrastructure Bank to
expand public-private sector spending
• Initial funding expected to be $5 billion and increase to $25 billion by 2019
The federal stimulus package will also give help to pension funds by creating
investment opportunities for their infrastructure allocations
• CalPERS
• In the past CalPERS grouped its infrastructure investment with other alternative assets
such as private equity
• CalPERS has stated it would allocated up to $7.2 billion for infrastructure with a net
target return of 5% over inflation over a period of five years
Successful examples of PPP investing
• In 2006, leasing of the 75 year old Indiana Toll Road for $3.8 billion to Statewide
Mobility Partners and Macquarie Infrastructure Partners
• In March 2009, Florida closed a $1.6 billion concession to develop toll lanes on I-
595 with Madrid-based ACS Infrastructure Development
15. 15
Over half of U.S. states have legislation authorizing PPPs
transactions for
Long-term leasing of existing infrastructure
New development of transportation infrastructure
Public – Private Partnership Outlook
Examples of Current Deals in
Development
California’s Port of Oakland: 50 year $700
million transaction to specific port facilities
with Ports America Group
Wisconsin’s Mitchell International Airport:
Investigating feasibly of a long-term lease to raise
$1 billion for transit system over 50 years
Wisconsin’s Water Works: In an effort to reduce
city tax increases and budget cuts, the hope is to
raise more than $500 million for leasing of water
system
16. 16
Potential Risks to U.S. Infrastructure Investing
U.S. Government regulations could hinder private investment in
infrastructure projects
U.S. Government regulations could hinder private investment in
infrastructure projects
Extent of time to bring a project to fruition could also miss the
window of opportunity of viable investors
Extent of time to bring a project to fruition could also miss the
window of opportunity of viable investors
The slow evolution of PPPs in the U.S. could see investments
moving towards other parts of the world
The slow evolution of PPPs in the U.S. could see investments
moving towards other parts of the world
U.S. Government reallocation of infrastructure budget and
resources to other higher priority initiatives
U.S. Government reallocation of infrastructure budget and
resources to other higher priority initiatives
17. 17
Infrastructure Investing Outlook
Opportunities are
available for the
savvy and
disciplined investors
Increasing ROI due
to price moderation
Less leverage
available
U.S. Government fiscal
budget shortfalls are
apparent
Combined with budget
shortfalls, the increasing
awareness of failing
infrastructure leads to
more PPP opportunities
President Obama
administration is focused
on infrastructure and
clean energy
Independence of
infrastructure assets
from business cycle
risk – relatively
recession resistant
Tangible, real assets
are more attractive if
global stimulus leads
to inflation
Political Factors Economic FactorsCredit Crisis Factors
19. 19
Municipal Water
and Wastewater
Market Dynamics
EPA estimates and
investment of $390
billion for waste
water municipalities
Municipalities for
safe drinking
water face $11
billion shortfall this
year
Current Size of
North American
market is $2.74
billion
Market emphasis
on water reuse
and recycling
Forecasted five-
year CAGR is
7.04%
• Strict drinking water and
effluent quality regulations
are forcing utilities to
upgrade current systems.
• Increasing U.S. population
growth is forcing
municipalities to consider
expanding current
facilities.
• Gap between investment
required for infrastructure
development and funds
received by EPA is
constantly increasing.
Current funding is only $6
billion.
Municipal Water and Wastewater Infrastructure
21. 21
Power Generation
Market Dynamics
Future investment is
estimated at $900
billion over next 15
years
60% of circuit
breakers are 30+
years old
Current Size of
North American
market is in
excess of $750
billion
70% of
transmission and
power
transformers are
25+ years old
Forecasted five-
year CAGR is
3.9%
• The U.S. Government fiscal
package allocates $32 billion
to transform energy systems
by allowing for smarter and
improved grid and focusing
investments on renewable
technology.
• There is an existing gap
between production and
consumption of electricity
due to limited capacity—
hence need for new
investments.
• Developments in renewable
energy generation are
expected to drive power
generation infrastructure
investment.
Power Generation Infrastructure
22. 22
MarketEnhancers
Drivers
MarketInhibitors
* Length of arrows indicate impact and
relevance of driver / constraint
Power Generation Infrastructure
Aging Power
Plants
Environmental
Regulations to
Reduce Air
Pollution
Increasing
Power
Demand
EPAct 2005
Tax Benefits
& Incentives
Increase in
Renewable
Energy to Boost
Turbine
Development
Increased
Raw
Material
Costs (Steel,
Copper)
Insufficient
Capacity
Lack of
Power Project
Financing
Due to Long
Payback
Period
23. 23
Airport Industry
Market Dynamics
FAA estimates
$49.7 billion is
required for
infrastructure
development in the
next five years
U.S. government
stimulus package
allocates $1.3
billion in funding
Current size of
North American
market is $15-20
billion
Over the past 30
years passenger
air traffic has
increased seven-
fold
Forecasted five-
year CAGR is 5%
• Capacity issues will either
push airports to expand or
new airports to be built – a
clear indication of the
future outlook of the airport
industry.
• U.S. airports will
continually be facing a
fluctuation of demand, and
at the same time receiving
modest funding increase.
• There is a clear
opportunity given the gap
of government funding and
the need for private
investors.
Airport Infrastructure
25. 25
Road Industry
Market Dynamics
ASCE estimates
$186 billion per year
is needed for road
development
36% of roads in the
U.S. are continually
congested costing
$63 billion in time
and wasted fuel
U.S. highway road
system is valued
at $1.75 trillion
34% of roads are
in poor or
mediocre
condition
Forecasted five-
year CAGR is
between 5 - 6%
• Passenger and commercial
travel on U.S. highways
continue to increase every
year.
• The American Recovery and
Reinvestment Act only
allocates $27 billion for
roads. The Highway Trust
Fund has a balance of $16
billion, mostly derived from
user fees. The funding gap
needs to come via private
investment.
• PPP toll road establishment
has been proven in the U.S.
(ex, Chicago’s Skyway,
Orlando Orange County
Expressway)
Roads Infrastructure
28. 28
Strong growth is anticipated for private infrastructure investing due to
the $1.2 trillion shortfall between:
An estimated $2.2 trillion over 5 years is critical for
upgrading/replacing current U.S. infrastructure
$975 billion U.S. Government is spending on infrastructure projects
Priority will be given to projects that are in need of “gap funding”
Public – Private Partnerships have the greatest advantage to
penetrate private capital
Over half of states have legislation authorizing PPPs with other
states seeking approval of pending legislation
Conclusion
29. 29
• To leave a comment, ask the analyst a question, or
receive the free audio segment that accompanies this
presentation, please contact:
Jake Wengroff
Global Director, Corporate Communications
(210) 247- 3806
jake.wengroff@frost.com.
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