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The Business of Coastal Management
Capturing the benefits from mitigating risk to
deliver coastal resilience infrastructure projects
Paul Mackie
Coastal Strategic Development Manager,
Coastal Partnership East: North Norfolk, Suffolk Coastal,
Waveney District & Great Yarmouth Borough Councils
working in partnership
The Partnership
Funding model
Thinking wider
Capturing the full cost of disasters enables us to
present a stronger business case to mitigate these
risks
Risk, Resilience and Response
in a Changing Climate
Convened by Environment Agency Organised by TrioTelford International Centre, February 23-25 2016
Financing Resilience, Paul Mackie, Suffolk Coastal & Waveney DCs
Our projects are catalysts for growth.
They are an ‘enabler’, unlocking investment by
minimising uncertainty.
So we sell the benefits from mitigating risk,
rather than the cost of not mitigating them.
Lowestoft
Image data ©2016 Google
Earth, ©2016 Getmapping plc
December 2013 tidal surge – catalyst for change
• Largest in Lowestoft since 1953;
• Over 160 properties affected;
• Businesses brought to standstill;
• Highlighted the inadequacy of
Lowestoft’s defences and the impact on
existing and potential growth (from all
sources of flooding).
Tidal flood risk assessment
Image data ©2016 Google
Earth, ©2016 Getmapping plc
The project will:
• Reduce the risk of flooding from all
sources;
• Facilitate economic growth;
• Stimulate development and creation of
jobs;
• Maintain effective flood risk management
for Lowestoft in the long-term.
£7.6m
Central
Government
£2.8m
Local
Levy
£3m
Suffolk
CC
£1m
Waveney DC
£10m
Local
Enterprise
Partnership
£1m
Anglian Water
Projected total
£25.4m
Challenges:
• Those exposed to risk now need to co-
finance mitigation projects
• We struggle to value to true economic
impact of flood / erosion
• We therefore struggle to present a
compelling business case in cost/benefit
terms
Into the Dragons Den
By capturing the full benefits of mitigating
risk we can finance our projects in new ways:
 Borrow the money based on future income
 Engage traditional investors, using value
generated from risk mitigation to repay them
 Approach public sector bodies for co-financing
 Bid for investment from innovative organisations
looking to invest in projects which generate
wider value
In a nutshell
Our projects generate a wide range of benefits.
Risk reduction is just one.
To unlock new solutions to the funding challenge we are:
 Looking beyond traditional approaches
 Capturing the full range of benefits
 Looking for ways to create added value
 Presenting our projects to funders in new ways

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Idea using the costs to convey the benefits - paul mackie

  • 1. The Business of Coastal Management Capturing the benefits from mitigating risk to deliver coastal resilience infrastructure projects Paul Mackie Coastal Strategic Development Manager, Coastal Partnership East: North Norfolk, Suffolk Coastal, Waveney District & Great Yarmouth Borough Councils working in partnership
  • 3. Thinking wider Capturing the full cost of disasters enables us to present a stronger business case to mitigate these risks
  • 4.
  • 5.
  • 6.
  • 7.
  • 8. Risk, Resilience and Response in a Changing Climate Convened by Environment Agency Organised by TrioTelford International Centre, February 23-25 2016 Financing Resilience, Paul Mackie, Suffolk Coastal & Waveney DCs
  • 9. Our projects are catalysts for growth. They are an ‘enabler’, unlocking investment by minimising uncertainty. So we sell the benefits from mitigating risk, rather than the cost of not mitigating them.
  • 10.
  • 11.
  • 12.
  • 13. Lowestoft Image data ©2016 Google Earth, ©2016 Getmapping plc
  • 14. December 2013 tidal surge – catalyst for change • Largest in Lowestoft since 1953; • Over 160 properties affected; • Businesses brought to standstill; • Highlighted the inadequacy of Lowestoft’s defences and the impact on existing and potential growth (from all sources of flooding).
  • 15. Tidal flood risk assessment Image data ©2016 Google Earth, ©2016 Getmapping plc
  • 16. The project will: • Reduce the risk of flooding from all sources; • Facilitate economic growth; • Stimulate development and creation of jobs; • Maintain effective flood risk management for Lowestoft in the long-term.
  • 18. Challenges: • Those exposed to risk now need to co- finance mitigation projects • We struggle to value to true economic impact of flood / erosion • We therefore struggle to present a compelling business case in cost/benefit terms
  • 20. By capturing the full benefits of mitigating risk we can finance our projects in new ways:  Borrow the money based on future income  Engage traditional investors, using value generated from risk mitigation to repay them  Approach public sector bodies for co-financing  Bid for investment from innovative organisations looking to invest in projects which generate wider value
  • 21. In a nutshell Our projects generate a wide range of benefits. Risk reduction is just one. To unlock new solutions to the funding challenge we are:  Looking beyond traditional approaches  Capturing the full range of benefits  Looking for ways to create added value  Presenting our projects to funders in new ways