The World Bank's framework for assessing PIM systems - Anand Rajaram, World B...OECD Governance
This presentation was made by Anand Rajaram, World Bank, at the 8th Meeting of Senior Public-Private Partnerships and Infrastructure Officials held in Paris on 23-24 March 2015.
The World Bank's framework for assessing PIM systems - Anand Rajaram, World B...OECD Governance
This presentation was made by Anand Rajaram, World Bank, at the 8th Meeting of Senior Public-Private Partnerships and Infrastructure Officials held in Paris on 23-24 March 2015.
Presentation made at the 7th High Level Session (HLS) Ministerial Forum of the Global Water Partnership-Caribbean (GWP-C).
Presentation by Mr. Glenn A. Khan, Deputy Executive Director of the Regulated Industries Commission (RIC).
Slides from Abu Dhabi Prroject Financing Conference (2002) on "Negotiating the Terms & Conditions of the Project Debt and Achieving Financial Close"
This is an all about the overview of the topic "Financing Project Through Structured Finance" with a proper explanation related to Project Finance and Structured Finance.
Prepared by the students of corporate finance at the MBA program of IE Business School, this presentation provides an introduction to project finance and analyzes two case studies involving project finance.
The effect of federal infrastructure spending on private-sector productivity depends in part on the response of state and local governments and in part on how long the investment takes to become productive. Greater emphasis on particular contributions of infrastructure to productivity or different ways of allocating funds could make federal infrastructure spending more productive.
Presentation by Chad Shirley, Deputy Assistant Director for Microeconomic Studies, at the Transportation Research Board’s International Transportation and Economic Development Conference.
The infrastructure sector contribution to sustainable development - MOOC FFD ...Marco Pittalis
The paper presents the relevance of the infrastructure sector to sustainable development, with particular regard to its central role within the Sustainable Development Goals, and details the financing requirements and financing modalities options to support the implementation of required interventions in the sector. The discussion is concluded introducing basic climate change concepts related to the infrastructure sector, presenting for each infrastructure subsector a number of mitigation options that could be implemented with the financing resources mobilized following the modalities presented early.
Presentation made at the 7th High Level Session (HLS) Ministerial Forum of the Global Water Partnership-Caribbean (GWP-C).
Presentation by Mr. Glenn A. Khan, Deputy Executive Director of the Regulated Industries Commission (RIC).
Slides from Abu Dhabi Prroject Financing Conference (2002) on "Negotiating the Terms & Conditions of the Project Debt and Achieving Financial Close"
This is an all about the overview of the topic "Financing Project Through Structured Finance" with a proper explanation related to Project Finance and Structured Finance.
Prepared by the students of corporate finance at the MBA program of IE Business School, this presentation provides an introduction to project finance and analyzes two case studies involving project finance.
The effect of federal infrastructure spending on private-sector productivity depends in part on the response of state and local governments and in part on how long the investment takes to become productive. Greater emphasis on particular contributions of infrastructure to productivity or different ways of allocating funds could make federal infrastructure spending more productive.
Presentation by Chad Shirley, Deputy Assistant Director for Microeconomic Studies, at the Transportation Research Board’s International Transportation and Economic Development Conference.
The infrastructure sector contribution to sustainable development - MOOC FFD ...Marco Pittalis
The paper presents the relevance of the infrastructure sector to sustainable development, with particular regard to its central role within the Sustainable Development Goals, and details the financing requirements and financing modalities options to support the implementation of required interventions in the sector. The discussion is concluded introducing basic climate change concepts related to the infrastructure sector, presenting for each infrastructure subsector a number of mitigation options that could be implemented with the financing resources mobilized following the modalities presented early.
NEWIN is the leading US based water innovation cluster. NEWIN members are accelerating water innovation to market, solving global water challenges through local innovation and collaborationn
EIB: Stimulating Investment in water innovationEIP Water
The European Investment Bank EIB presents challenges for financing innovation development in the water sector and potential instruments / mechanisms for doing so.
Produced Water Handling System UpgradeBrian Thomas
General description of the application is discussed, along with IES performance of all engineering, design, programming, control panel fabrication, electrical construction, and construction of an electrical equipment building for this produced water handling system upgrade. Project consisted of the addition of a water separation and induced static flotation vessels, and eight 450 HP, 4,000 gpm water transfer pumps controlled by VFDs. Electrical and control system consisted of dual 12 kV services, a 12 kV Automatic Transfer Switch, 12 kV transformers, 480 V switch gear with manual transfer scheme, ControlLogix PAC’s and RIO control panels communicating using Ethernet/IP over a fiber DLR network, a Wonderware/ArchestrA SCADA system.
CFSGAM Presentation - Yarra Valley Water Breakfast seriesNEXTDC
This case studies describes how Colonial First State Global Asset Managet turned the Grand Plaza Shopping Centre in Browns Plains QLD into the first shopping centre in the country to achieve a NABERS Energy and Water rating.
Public financial mechanisms that enhance the viability of ESCO projects, Alex...OECD Environment
2nd OECD-DOE Clean Energy Finance and Investment Consultation Workshop: Unlocking finance and investment for clean energy in the Philippines, 24-25 November 2022, Bohol, Philippines
Connecting global & regional finance to projects - Finance for #SDGs High Level Meeting – #financeforSDGs – Christoph Waldersee – Bellagio – 25-27 February 2015
Supporting Private Investment in Infrastructure FinanceIwl Pcu
Need for Private Financing:
1.Financing needs are too large to be met soely by donor and host government funds:
need for sustainable solutions
2.Conducive legal and regulatory environment critical: to attract private capital
banks will still be reluctant to undertake new projects in new sectors
3.Partial guarantees can serve as a catalyst for: private financing in new sectors and new projects
development of capital markets.
Aligning Sponsor and Investor Interests in P3s - Alternative Risk and Profit...OECD Governance
Presentation made by Elaine Buckberg, US Treasury Department, at the 9th annual network meeting of Senior Infrastructure & PPP Officials held at the OECD, Paris, on 1 March 2016
ISMED Training: PPP Fundamentals by Andrew Fitzpatrick, OECDOECDGlobalRelations
Presented at the Training Session on Public Private Partnerships organised by the MENA-OECD Investment Security in the Mediterranean (ISMED) Support Programme in September 2014.
A Public Private Partnership Approch to Climate FinanceAldo Baietti
The detrimental effects of climate change are growing, yet investments in clean technologies are still grossly insufficient, making it necessary to re-think how these projects should be evaluated, structured and financed in order to render them viable and attractive opportunities to polluting alternatives. Existing approaches lack key features in order to adequately address the key financing challenges of these investments, and do not utilize public support to its maximum effectiveness. The international community is essential in resolving this financing challenge, and host governments need to create an environment that levels the playing field for green investments vis-à-vis their conventional alternatives. The Green Infrastructure Finance Framework places clean investments in a commonly understood framework of structured finance with public finance components, as in many hybrid PPPs. The framework includes four
main elements: (i) a viability gap methodology for evaluating, structuring and equitably allocating financing responsibilities to different private and public parties; (ii) linkage to a country’s PPP’s procurement and regulatory framework along with an MRV component for ensuring the service obligations of projects; (iii) measures for addressing the adequacy of the climate for these investments; and (iv) a financing and advisory interface for allocating a wide variety of public sources of financing in a coherent fashion.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
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@Pi_vendor_247
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how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdf
Investments in water private and public investments
1. INVESTMENTS IN WATER
PPPs and Public Investment
Thursday, December 10th
Daniel Bouskela
Eugene Chao
Molly Whitehouse
Sterling Wilson
2. Agenda
• Introduction: Need for Infrastructure, Spectrum of Funding Options
• PPP model
• How does it work?
• How have they performed? How do they price?
• Pros / cons
• Public funding mechanism
• How does it work?
• A Philadelphia Example
• Pros / cons
• Conclusion
5. 5
Public Funding PPPs
Private Funding (not
approached in this ppt)
# of water
systems (in
the US)¹
Source: ¹EPA
1,343 (6%)10,800 (~44%) 12,145 (~50%)
Description Contractual agreements
between public and
private sector, in general
with private capital and
private operation.
Water systems held
completely by private
companies. In general, in
smaller municipalities
What are the possible funding structures for water infrastructure?
State or local government
issues debt, which it uses
to fund the design,
construction, and
operations of the facility.
Funding Sources
6. Several models of agreements can be drawn to invest in infrastructure
6
Spectrum of Public vs. Private Involvement
7. Water investments are essential in most of the world. With lack of capital to
invest, governments have been adopting new forms of investing.
• According to the WHO/UNICEF, 32 % of the
world’s population – 2.4 billion people –
lack improved sanitation facilities.
• 663 million people still used unimproved
drinking water sources in 2015
Name of Presenter 7
…
• Public debt has reached one of the
highest levels in the history
• Governments are adopting other
mechanisms to invest in water
infrastructure
PPPs are
9. 9
• Government designs the project
• Auction is set to find potential interested partners
• Partners invest / operate the contract
• Partners recover investment through service fees paid by the public or the
government.
“In an infrastructure-intensive sector, improving access and service quality to meet
the SDGs cannot be done without massive investments. Around the developing
world, the water sector appears chronically under-funded and inefficent. In this
context, Public-private partnerships (PPPs) can be viewed as one of the tools
(among others) available to governments for improving the performance and
financial sustainability of the water sector. “ World Bank
PPPs - Public Private Partnerships
10. 10
●
●
●
●
●
●
●
Gov.
Offtaker
Infrastructure
Service
Revenue
Construction
Contractor (EPC)
Senior Debt
Shareholder Equity
Water Infrastructure
Asset SPV
Free Cashflow
Residual Cashflow
Proceeds from
Commitments
Management Service
Provider
Feedstock/Fuel
Supplier
O&M Services
Provider
Insurer
Payments to
Service Providers Services
Asset
Construction
1. http://www.eib.org/epec/resources/epec-capital-markets.pdf
2. “How Banks Price Loans to Public-Private Partnerships:Evidence from the European Markets,” Journal of Applied Corporate Finance, Vol. 19, No. 4, Fall 2007.
Project Finance: Typical PPP Financing Structure
€
●
●
11. ▪ From 1990-2013, the ten-year cumulative default rate for PPP/PFI was 3.9%, compared to overall project finance (6.4%).2
▪ In the event of a default, 10-year cumulative recovery rates for PPP average 81.5%, slightly higher than project finance overall (80.3).2
▪ Moody’s default and recovery rates imply that for a $100 million project, an average loss over 10 years would be $3.18 million.
▪ Transactions de-risk over time, with regular amortization, cash sweeps, reserve accounts, and “lock box” formats as typical features of the asset
class.
▪
Moody’s tracks 5,308 project finance loans, 1,293 of which they designate as PPP/PFI.
Historically, PPP/PFIs have been uncorrelated with other major markets, exhibiting
low volatility while generating inflation-linked cash returns.1
1. “Default and Recovery Rates for Project Finance Bank Loans, 1983-2013,” Moody’s Investors Service, (2015).
2. Figures are based on the Basel II definition of default, which incorporates a higher number of defaults than the Moody’s definition of default. “Default and Recovery Rates for Project Finance Bank Loans, 1983-2013,” Moody’
s Investors Service, (2015). Implied losses calculated by multiplying defaults by losses (i.e. 1 minus recovery).
3. Calculated based on data provided in “Default and Recovery Rates for Project Finance Bank Loans, 1983-2013,” Moody’s Investors Service, (2015), Exhibit 11.
4. For project finance default rates: “Default and Recovery Rates for Project Finance Bank Loans, 1983-2013,” Moody’s Investors Service, (2015), Exhibit 11. According to Moody’s, the initial three year period of elevated
marginal default rates is strongly linked to construction phase risk and/or the commencement and ramp-up of operations. For corporate default rates: Moody’s Special Comment, "Corporate Default and Recovery Rates,
1920-2011,” (2012), Exhibit 34, “Average Cumulative Issuer-Weighted Global Default Rates by Letter Rating, 1983-2014”.
Marginal Annual Defaults According to
Moody’s
Marginal annual default rates are
broadly stable for the initial 4 years
post financial close, overlapping with
an approximate 3-4 year development
and construction period, and decline
thereafter to marginal annual default
rates consistent with those of corporate
issuers in the Baa ratings category or
better.
Defaults & Recovery
12. Project Finance Loans Weighted Average Spread (bps)1
1. Compiled from database queries in Thomson ONE Banker.
2. “How Banks Price Loans to Public-Private Partnerships:Evidence from the European Markets,” Journal of Applied Corporate Finance, Vol. 19, No. 4, Fall 2007.
As in Many Things, Coupons are Cyclical
16. Costs & Benefits of the PPP Structure
Benefits
Harness private sector expertise & efficiency
● Risk mitigation
Government bears risks that might be unpalatable
or too expensive in the private market.
○ E.g. guarantees of debt / debt service reserves,
exchange rates, ability to convert local currency,
offtake purchaser obligations, tariff collection, a
minimum level of demand for services…
● Efficiency
Private investors are more efficient, e.g. by
keeping down construction and operating costs
and delays, which is believed to more than offset
the cost of risk-pricing by private financiers.
● Low necessity of public funding
○ The government does not incur debt
○ Costs either born by end-user or taxpayer,
depending on the government’s goals
+ - Drawbacks / Criticisms
Higher cost, lower service
● Hides government debt
By transferring costs to private sector in favor
of an ongoing payment agreement and
sometime certain government guarantees,
some accuse that it hides government debt.
● Undermines services
The private sector has financial incentives,
which sometimes conflict with the whole public
interest, and won’t be addressed (e.g. in a
huge draught, private sector wouldn’t be happy
if had to invest in extra infrastructure).
● More expensive
Private sector will, in theory, demand a higher
ROI.
● Government still needs to control
(insure water quality and access)
17. The Perception of Public Sector in Financing
Water Infrastructure in the United States
18. A well designed infrastructure investments can raise economic growth, productivity, and
land values, while also providing significant positive spillovers to areas such as economic
development, energy efficiency, public health and manufacturing.
…..………..…The Department of the Treasury with the Council of Economic Advisers October 11, 2010
Operators
Public Sector
19. Tools for Public Financing Water
Infrastructure in the United States
20. Grants
Loans
EPA Environmental
Finance Program
Information
Access
Fees &
Special Charges
Bonds
Subsidies
Grants from federal, state, and/or local sources, often disbursed on the basis of a
competitive, merit-based process, are one source of funding.
Ex: USDA rural business enterprise grants, EPA Drinking Water State Revolving Fund
Short or long-term commercial loans, typically with fixed interest payments.
Ex: Water Infrastructure Finance and Innovation Act (WIFIA),Clean Water State Revolving Fund (CWSRF)
Subsidies to an operator to cover operating losses (which may include interest on debt
financed projects) are another funding source.
Ex: Interest Rate Subsidies
Electronic services
Ex: Catalogue of Federal Domestic Assistance (CFDA) and Grants.gov
The program provides leveraged financial outreach services through advisory
board (EFAB), finance center (EFC), and information network (EFIN).
Ex: EFC is a system of 9 university-based centers to provide the public and private sector with
training and educational, technical, and analytic assistance on environmental finance.
The price pays as remuneration for services or financial charges for activities undertaken.
Ex: Connection fees, Septic system inspection fees, water and wastewater utility user fees
A bond is a written promise to repay borrowed money on a definite schedule, and usually
at a fixed rate of interest for the life of the bond.
Ex: Advance Refunding Bonds, Anticipation Notes, Special Tax Bonds
Source: U.S. EPA Guidebook of Financing Tools: Paying for Environmental System, August 2008
21. Water Infrastructure Finance and Innovation Act (WIFIA)
WIFIA could provide credit assistance to large water infrastructure projects that otherwise have
difficulty obtaining financing.
WIFIA would access funds from the U.S. Treasury at Treasury rates, the mechanism is able to
lower the cost of capital for borrowers.
WIFIA assistance would have much less of a federal budgetary effect than conventional project
grants that are not repaid, because only the subsidy cost of a loan (representing the presumed
default rate on loans) would be scored. Thus, if only an average 10% subsidy cost is charged
against budget authority, a $20 million budgetary allocation theoretically supports $200 million in
loans.
To be eligible for assistance, projects must be determined to be creditworthy with a revenue
stream for repayment, thus limiting the federal government’s exposure to default and also
encouraging private capital investment.
The WIFIA concept is modeled the Transportation Infrastructure Finance and Innovation Act (TIFIA) program.
WIFIA may include the following benefits:
1
2
13
4
Source: Water Infrastructure Financing: WIFIA Program, Congressional Research Service, August, 2015
23. Clean Water State Revolving Fund (CWSRF)
CWSRF authorized by the Clean Water Act, provides low-cost financial assistance for planning, design,
and construction of wastewater infrastructure. Eligible applicants include cities, counties, districts, river
authorities, public bodies, and private entities proposing nonpoint source or estuary management projects.
Enhance Infrastructure System
✓ Treatment
• Projects to install or upgrade facilities to improve drinking water quality to comply with SDWA regulations
✓ Transmission and distribution
• Rehabilitation, replacement, or installation of pipes to improve water pressure to safe levels or to prevent
contamination caused by leaky or broken pipes
✓ Source
• Rehabilitation of wells or development of eligible sources to replace contaminated sources
✓ Storage
• Installation or upgrade of finished water storage tanks to prevent microbiological contamination from entering
the distribution system
✓ Consolidation
• Interconnecting two or more water systems
✓ Creation of new systems
• Construct a new system to serve homes with contaminated individual wells
• Consolidate existing systems into a new regional water system
Source: U.S. EPA Drinking Water State Revolving Fund (DWSRF)
- provide the largest capital assistance today
25. ➢ A Bond is an agreement in which an issuer is required to repay to the investor the
amount borrowed plus interest over a specific period of time.
➢ A Bond is a debt instrument issued by governments, corporations and other entities
in order to finance projects or activities.
Principal borrowed by government from the investor.
Principal and Interest returned to the investor
Principal
Interest
Government/ Bond Issuer Investor/ Bond Buyer
39. Agenda
• Introduction: Need for Infrastructure, Spectrum of Funding Options
• PPP model
• How does it work?
• How have they performed? How do they price?
• Pros / cons
• Public funding mechanism
• How does it work?
• A Philadelphia Example
• Pros / cons
• Conclusion
40. Conclusion and Takeaways
40
Government should dedicate to prioritizing infrastructure needs, creating a streamlined
investment process and a competitive arena to galvanize investors’ creativity and innovation.
Government should devote to maximizing efficiency gains and mobilizing private capital.
Environmental planning, funding and financing decision has to be made before EIS reviews.
Unnecessary restrictions given by BAB, etc should be unlocked. Otherwise, receiving public
funding will be a less desirable option and may cause unnecessary delay on projects.
Water pricing calculation should internalize administrative cost, link with inflation, and provide
saving incentives.
It is hard to directly compare whether PPP is better than Public Finance or the other because
it varies. But, Leadership and Governance are equally important and indispensable for all
infrastructure project.
44. 44
Where can I get the money? Should we try PPP or wait for federal financial support?
It’s grab a coffee first.
Time is money. It’s all about efficiency gains.
Return of Skill. Return of Speed. Return of Fund Size. Return of Impact Investing
Public Sector
Private Sector
The Efficiency and Project Delivery Process
45. 45
Source: The World Bank Public-Private Partnerships Reference Guide: Version 2.0
How PPPs can help infrastructure delivery process
The power of private sector
46. U.S. EPA Guidebook of Financing Tools:
Paying for Environmental System, August
2008
52. Key Decision-Makers Goal-setting Funding/Financing
Decision Criteria
Public Sector
Government
Federal
State
Municipal/Regional
❑ Maximizing public benefits
❑ Minimizing negative
externalities
❑ Risk of project default
Political level
• Funding availability
• Pricing
• Public benefits (economic
impacts) justify investment
• Project size/ risk profile
• Public support
• Financing capacity and ability
to attract grants
Administrative level
• Budget/funding availability
• Necessary approval (EIS,
Procurement process)
• Political power
• Pricing and regulatory policy
Public Water Operations ❑ Achieving mandated public
policy objectives
Access to funding
Private Sector
Private Water Operations ❑ Profitability
❑ Other investment
opportunity (network
expansion)
• ROI
• Risk profile
• Optimal capital structure
• Shareholder support
Shareholders/ Capital
Markets
❑ ROI (Share prices,
dividends)
• Consistence with portfolio
landscape
• Resistance to
macroeconomic risk
Lenders/Banks/Bond Market ❑ Return on loans • Creditworthiness to borrower
• Securing risks
• Resources to assets in
default risk
Suppliers ❑ Business growth
❑ Profitability
• New business where margins
can be generated
• Risks associate with revenue
53. Contract durations vary considerably – from 3 years (management) to
20 years (delegation contract)
Name of Presenter 53