Infrastructure Finance

Description

A comprehensive look at the emergence of infrastructure finance

Just as infrastructure development acts as a catalyst for economic growth, it is also changing the landscape for potential investors and the burgeoning field of infrastructure finance. Infrastructure systems for transportation, utilities, and public works are essential for economic growth and have quickly developed into an emerging alternative asset class.

Infrastructure Finance examines how the activities associated with updating and creating efficient transportation and communications, reliable and affordable energy, clean water, and other essential systems, have become a profitable financial endeavor. Recently, providing, operating, and maintaining infrastructure has advanced as a recognized and important investment sector that reaches beyond earlier business models. Infrastructure Finance puts this field in perspective and details what you need to know to succeed within it.

An informative look at infrastructure finance-an emerging alternative investment for all types of institutional investors

Dissects the central organizational and financial issues behind the revolutions that are occurring in infrastructure management and finance

Contains detailed guidance for navigating the dynamic field of infrastructure finance

Discusses infrastructure as arteries of life for a better world

Highlights infrastructure undergoing transformations to adapt to turbulent environments

Focuses on Green infrastructure to balance economic and environmental changes

As infrastructure finance continues to grow in importance, you’ll need to enhance your understanding of its essential aspects. Infrastructure Finance will provide you with the insights to achieve this goal.

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Preface.

Acknowledgments.

Chapter 1 An Introduction to Infrastructure Finance.What is Infrastructure Business?

Infrastructure Then and Now.

A System of Systems.

Sector Structure and Size.

Estimating the Per Capita Cost.

Need for New Approaches.

Summary.

Part One Infrastructure Sectors and Investments.Chapter 2 Models of the Infrastructure Sectors.Classification System.

Infrastructure and Service Organizations.

Business Models of Infrastructure Subsectors.

How Infrastructure Systems Serve the Built Environment.

Matrix of Owners and Users of Infrastructure Systems.

Infrastructure and Services: Structures and Equipment.

Infrastructure Support Sector.

Summary.

Chapter 3 Infrastructure and the Constructed Environment.Land Uses in the Built Environment.

Growth and Change in Urban Areas.

Financial Assets in the Built Environment.

Housing Finance as an Engine of Development.

Commercial and Central City Development.

Impact Fees and the “Growth Pays Its Own Way” Philosophy.

Future Cities and Infrastructure.

Summary of Issues and Outlook.

Chapter 4 Transportation Sector.Sector Structure and Size.

Road and Highway Systems.

Mass Transit Systems.

Air Travel and Airports.

Intercity Rail Systems.

Intercity Bus Transportation.

Water-based Transportation.

Pipelines.

Sector Issues and Outlook.

Chapter 5 Telecommunications Sector.Why Telecommunications Is an Infrastructure Sector.

Then and Now.

Sector Structure and Size.

Internet.

Telecommunication Companies.

Sector Issues and Outlook.

Chapter 6 Energy Sector.Sector Structure and Size.

Energy Trends.

Electric Power Industry.

Natural Gas Industry.

Petroleum Industry.

Coal Industry.

Nuclear Power Industry.

Renewables.

Energy Storage.

Hydrogen Energy.

Sector Issues and Outlook.

Chapter 7 Water and Wastewater Sector.Then and Now.

Sector Structure and Size.

Financial Framework of the Sector.

Financial Issues.

Business Profiles.

Water Industry Support Businesses.

Privatization in the Water Sector.

Investing in Water as a Commodity.

Industry Policy and Regulation.

Coordination in the Water Sector.

Sector Issues and Outlook.

Chapter 8 Waste Management Sector.Sector Structure and Size.

Categories of Solid Wastes.

Recycling and the Materials Industry.

Sector Issues and Outlook.

Chapter 9 Infrastructure and the Construction Industry.Then and Now.

The Construction Industry Today.

Organization of the Industry by Function and Sector.

Organization by Business Lines.

Project Delivery and Finance.

Construction Companies.

Sector Issues and Outlook.

Chapter 10 Investor and Business Opportunities in Infrastructure.Then and Now.

Bond Market.

Stocks of Infrastructure Companies.

Infrastructure Funds.

Infrastructure Indices.

Commodity Markets.

Mortgage-backed Securities.

Private Equity and Infrastructure.

The Infrastructure Support Sector.

Infrastructure Investment Media.

Corruption in the Infrastructure Business.

International Spending Plans.

Investment Issues and Outlook.

Part Two Financing Infrastructure.Chapter 11: A Scorecard for Infrastructure Performance.Tracking Infrastructure Performance.

What Systems to Measure?

What Are the Performance Standards?

How Much Do They Cost?

How Ready Are They to Perform?

Financial and Economic Data on Infrastructure.

Infrastructure Scorecard.

Summary.

Chapter 12 Financial Models for Infrastructure Organizations.General Management Model.

General Financing Model.

Sector Financing Models.

How Governments Can Improve Infrastructure Performance.

Public-Private Partnerships (PPP).

Regulation.

Summary.

Chapter 13 Capital Markets for Infrastructure.Capital Requirements of Sectors.

Capital Flows of Infrastructure.

Capital Structure of Infrastructure Sectors.

Sources of Capital.

Investment Banking.

Summary.

Chapter 14 Revenues for the Infrastructure Sectors.Flow of Revenues.

Rate-setting for Infrastructure-based Services.

Rate Regulation.

Revenue and Cost of Service Analysis.

Tax Revenues and Subsidies.

Infrastructure Revenue by Sector.

Summary.

Part Three Looking Toward the Future.Chapter 15 Opportunities and Risks for Infrastructure.Infrastructure as a Policy Sector.

Infrastructure Policy Elements.

Sector Issues.

Transformational Issues.

Appendix A: Data Sources.

Appendix B: Infrastructure Companies.

Appendix C: Acronyms.

References.

About the Author.

Index.

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Neil S. Grigg is professor of civil and environmental engineering at Colorado State University. Hehas worked as professor, administrator, and consultant in the fields of infrastructure engineering andmanagement, water resources engineering, urbanwater systems, and public administration ofinfrastructure facilities and environmental regulatory programs. Grigg is a registered professional engineer in Colorado, Alabama, and North Carolina. He has served as a consultant for many government organizations, including the United Nations agencies FAO, UNDP, and UNESCO.

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Without basic systems such as transportation, energy, and water, neither the economy nor society can function. And for this reason, infrastructure, no matter how you define it, will always be a large and important business sector. Recently, due to the credit crisis, providing, operating, and maintaining infrastructure has advanced as a recognized and important investment sector that reaches beyond earlier business models for transportation and public utilities. Banks, hedge funds, and other alternative asset investors are now extremely interested in infrastructure investments, and the field is expected to grow beyond $1 trillion in the next few years. Infrastructure Finance puts the changes in this burgeoning field into perspective and shows how you can profit from it.

Author Neil Grigg explains how infrastructure is a composite sector and details its sub-sectors, including transportation, telecommunications, energy, water, waste management, and construction. He then identifies direct avenues for investment, such as stocks and bonds, and offers information about infrastructure sector indices, which are proliferating due to the rising popularityof infrastructure as an investment category. In addition, he addresses business opportunities that arise for private equity, startups, and new markets for infrastructure firms.

This reliable resource also presents a scorecard ofstatistics for the aggregated infrastructure sectorand its parts, introduces an overall financialmodel for the sector, explains its capital structure,and describes the sources of revenues for its sub-sectors. The final chapter explains current thinking about national policy, including publicand private roles in improving infrastructure, while dealing with an ongoing financial crisis. Along the way, the book presents a number of brief profiles of public agencies, private infrastructure companies, and supplier firms. The profiles illustrate how the players participate in the infrastructure arena, whether they are public or private entities, and also reveal how private sector players can work within the government-dominated infrastructure arena.

Deciding how to meet infrastructure needs drives an ongoing political debate about the allocation of resources and the roles of government, business, and individuals. But while the debates proceed, it remains clear that infrastructure is essential to meet human and environmental needs—and a solid investment in the future.

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Praise for Infrastructure Finance“This book is a must-read for those seeking to understand how the essentials of society—transportation, energy, water, and the like—are provided. For students seeking to work in the infrastructure sector, the book is compelling and provides illustration of the variety of options and models that are used to make business work. For those already in the sector, it will broaden understanding and support their professional development.”
—Steve Whipp, Asset Standards and Innovation Manager, United Utilities Water PLC

“For someone looking for one volume that literally sums up the ‘infrastructure business,’ Infrastructure Finance: The Business of Infrastructure for a Sustainable Future is the book. Neil Grigg has produced a thorough and approachable compendium of the multiple services that underpin modern society.”
—Richard G. Little, Director, The Keston Institute for Public Finance and Infrastructure Policy, University of Southern California

Infrastructure Finance examines how the activities associated with updating and creating efficient transportation and communications, reliable and affordable energy, clean water, and other essential systems have become a profitable financial endeavor. Author Neil Grigg puts this field in perspective and details what you need to know to succeed within it. He dissects the central organizational and financial issues behind the revolutions that are occurring in infrastructure management and finance and provides detailed guidance for navigating this dynamic field—including a focus on green infrastructure to balance economic and environmental changes.

As infrastructure finance continues to grow in importance, you’ll need to enhance your understanding of its essential aspects. Infrastructure Finance will provide you with the insights to achieve this goal.

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