2. Investing in Infrastructure
New financing models
Innovation in municipal bonds
Public private partnerships (learning from
Eurotunnel)
New projects Korean financing and ADB
3. Infrastructure Investment as an asset
category - I
There is an asset category which institutional investors now like
called infrastructure funds. From the profitable privatization
of airports to the development of smart roads or toll roads as a
profitable investment strategy, this has produced a series of
interesting case studies:
(1) (VIENNA AIRPORT privatization, ITALIAN TOLL
ROADS);
(2) Brazilian and India infrastructure funds become an
increasing part of the investment scene as a play on “emerging”
market growth;
(3) Governments with declining tax-bases (e.g. U.S. states)
seek privatization of infrastructure as a way to shift expensive
categories (water system reconstruction) to potential sources of
revenue.
4. Issues of infrastructure finance - II
These issues become an essential part of the capital market moving forward and a significant new
component of effective investment banking.
(1) How to finance the building of bridges in Montreal, where the financing of south shore
bridges becomes a cornerstone of economic development and avoid the EUROTUNNEL situation.
(2) How Indiana, generally considered a well-run state looks to take advantage of its positive
image in the bond market to reconstruct infrastructure;
(3) Why infrastructure (roads, ports, railways) become a cornerstone of investment strategies in
global high-growth regions (picking Pernambuco in Brazil as a case study) and
(4) how Ontario has become a global centre for infrastructure finance. The concentration of
infrastructure financing expertise in Toronto is a topic worth exploring, given the role here of
Macquarie ?
http://www.macquarie.com/mgl/mig , CPPIB http://www.cppib.ca and other
5. CASE STUDIES ON NEW INFRASTRUCTURE
CASE STUDY #1 INFRASTRUCTURE AND PRIVATIZATION : www.global-infra.com GLOBAL
INFRASTRUCTURE PARTNERS Fund backed by GE and Credit Suisse.
CASE STUDY #2 INDIANAPOLIS ?http://www.bondbuyer.com/issues/119_271/Indianapolis-Local-Public-
Improvement-Bond-Bank-1006801-1.html
CASE STUDY #3 SMART ROADS as an investment category http://seekingalpha.com/article/267316-for-whom-
the-road-tolls-reviewing-listed-toll-roads-bridges-and-
tunnels and http://www.matternetwork.com/2010/5/smart-roads-path-super-efficient.cfm
CASE STUDY #4 FROM VIENNA AIRPORT TO CENTRAL EUROPEAN INFRASTRCUTURE TUNNELS IN
AUSTRIA http://www.ft.com/intl/cms/s/0/5cc52b7a-e084-11e0-bd01-00144feabdc0.html#axzz1bRPZvCfs
CASE STUDY #5 PORTFOLIO of 3i INFRASTRUCTURE FUND http://www.3i-
infrastructure.com/disclaimer.html?r=/portfolio-summary.html
CASE STUDY #6 VENTURE CAPITAL TRUSTS as a funding innovation in municipal
markets http://www.ft.com/intl/cms/s/2/fea4c434-fb35-11e0-8df6-00144feab49a.html#axzz1baslVWd0
CASE STUDY #7 INDIAN INFRASTRUCTURE http://www.ft.com/intl/cms/s/0/62739a58-f58c-11e0-94b1-
00144feab49a.html#axzz1bRPZvCfs
CASE STUDY #8 PERNAMBUCO (one more let's-look-at-the-
map) http://www.brazilinvestmentguide.com/blog/2011/02/pernambuco-brazil’s-fastest-growing-state-real-
estate-land-property/
6. Booz Allen on Infrastructure – Trillions of dollars of Global
Demand
Lights! Water! Motion!
STRATEGY AND BUSINESS
“The world’s urban infrastructure needs a $40 trillion
makeover. Here’s how to reinvigorate our electricity,
water, and transportation systems by integrating
finance, governance, technology, and design”.
7. Canadian Institutional Investors do Infrastructure
exceptionally well
Macquarie comes to Canada to do infrastructure
CPPIB does infrastructure
CPPIB buys Auckland Airport (NEW ZEALAND)
$1.8 billion
8. Global Infrastructure Partners – a case study in
portfolio management
www.global-infra.com CREDIT SUISSE and GENERAL ELECTRIC
http://www.terra-genpower.com
http://www.gatwickairport.com
http://www.chkm.com
www.biffa.co.uk
http://www.eastindiapetro.com
http://www.i-p-h.co.uk Investments made through IPH to date are:
http://www.portbris.com.au/
http://www.itl.com.ar
www.eastportuk.co.uk
www.londoncityairport.com
11. Indian Infrastructure
http://articles.economictimes.indiatimes.com/2011-01-
28/news/28431941_1_inclusive-growth-private-sector-
india-targets
India targets $1 trillion infrastructure investment:
Ahluwalia
DAVOS: India will double its investments in
infrastructure to $1 trillion during the 11th Five Year Plan
that begins 2012, with half of that expected from the
private sector, Planning Commission Deputy Chairman
Montek Singh Ahluwalia has said.
12. The Next Suez Canal
Financing from future revenues
Railways for Africa
Ports for Pernambuco
Bridges everywhere
Underwater cities
Megacities become Zero Waste infrastructure
Incinerators, pipelines, sewage and smart grids
