Infrastructure Finance The Business of Infrastructure for a Sustainable Future

by Grigg, Neil S.

• ISBN13: 9780470481783
• ISBN10: 0470481781
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-03-08
• Publisher: Wiley

Summary

A comprehensive look at the emergence of infrastructure financeJust 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 changesAs 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.

Author Biography

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.

Table of Contents

Preface	p. xiii
Acknowledgments	p. xvii
An Introduction to Infrastructure Finance	p. 1
What Is Infrastructure Business?	p. 1
Infrastructure Then and Now	p. 3
A System of Systems	p. 7
Sector Structure and Size	p. 9
Estimating the Per Capita Cost	p. 11
Need for New Approaches	p. 11
Summary	p. 13
Infrastructure Sectors and Investments
Models of the Infrastructure Sectors	p. 19
Classification System	p. 19
Infrastructure and Service Organizations	p. 22
Business Models of Infrastructure Subsectors	p. 24
How Infrastructure Systems Serve the Built Environment	p. 26
Matrix of Owners and Users of Infrastructure Systems	p. 27
Infrastructure and Services: Structures and Equipment	p. 28
Infrastructure Support Sector	p. 30
Summary	p. 33
Infrastructure and the Constructed Environment	p. 37
Land Uses in the Built Environment	p. 37
Growth and Change in Urban Areas	p. 39
Financial Assets in the Built Environment	p. 45
Housing Finance as an Engine of Development	p. 47
Commercial and Central City Development	p. 55
Impact Fees and the Growth-Pays-Its-Own-Way Philosophy	p. 58
Future Cities and Infrastructure	p. 60
Summary of Issues and Outlook	p. 62
Transportation Sector	p. 65
Sector Structure and Size	p. 65
Road and Highway Systems	p. 69
Mass Transit Systems	p. 79
Air Travel and Airports	p. 84
Intercity Rail Systems	p. 87
Intercity Bus Transportation	p. 90
Water-based Transportation	p. 91
Pipelines	p. 92
Sector Issues and Outlook	p. 92
Telecommunications Sector	p. 97
Why Telecommunications Is an Infrastructure Sector	p. 97
Then and Now	p. 99
Sector Structure and Size	p. 100
Internet	p. 102
Telecommunication Companies	p. 102
Sector Issues and Outlook	p. 104
Energy Sector	p. 109
Sector Structure and Size	p. 109
Energy Trends	p. 114
Electric Power Industry	p. 116
Natural Gas Industry	p. 119
Petroleum Industry	p. 121
Coal Industry	p. 122
Nuclear Power Industry	p. 124
Renewables	p. 126
Energy Storage	p. 127
Hydrogen Energy	p. 129
Sector Issues and Outlook	p. 129
Water and Wastewater Sector	p. 135
Then and Now	p. 135
Sector Structure and Size	p. 137
Financial Framework of the Sector	p. 141
Financial Issues	p. 144
Business Profiles	p. 145
Water Industry Support Businesses	p. 149
Privatization in the Water Sector	p. 152
Investing in Water as a Commodity	p. 154
Industry Policy and Regulation	p. 154
Coordination in the Water Sector	p. 155
Sector Issues and Outlook	p. 156
Waste Management Sector	p. 161
Sector Structure and Size	p. 161
Categories of Solid Wastes	p. 162
Recycling and the Materials Industry	p. 169
Sector Issues and Outlook	p. 170
Infrastructure and the Construction Industry	p. 178
Then and Now	p. 173
The Construction Industry Today	p. 175
Organization of the Industry by Function and Sector	p. 179
Organization by Business Lines	p. 180
Project Delivery and Finance	p. 182
Construction Companies	p. 185
Sector Issues and Outlook	p. 191
Investor and Business Opportunities in Infrastructure	p. 193
Then and Now	p. 193
Bond Market	p. 195
Stocks of Infrastructure Companies	p. 198
Infrastructure Funds	p. 206
Infrastructure Indices	p. 210
Commodity Markets	p. 212
Mortgage-backed Securities	p. 213
Private Equity and Infrastructure	p. 213
The Infrastructure Support Sector	p. 214
Infrastructure Investment Media	p. 214
Corruption in the Infrastructure Business	p. 215
International Spending Plans	p. 216
Investment Issues and Outlook	p. 216
Financing Infrastructure
A Scorecard for Infrastructure Performance	p. 223
Tracking Infrastructure Performance	p. 223
What Systems to Measure?	p. 225
What Are the Performance Standards?	p. 226
How Much Do They Cost?	p. 230
How Ready Are They to Perform?	p. 230
Financial and Economic Data on Infrastructure	p. 234
Infrastructure Scorecard	p. 239
Summary	p. 243
Financial Models for Infrastructure Organizations	p. 245
General Management Model	p. 246
General Financing Model	p. 248
Sector Financing Models	p. 251
How Governments Can Improve Infrastructure Performance	p. 255
Public-Private Partnerships	p. 260
Regulation	p. 262
Summary	p. 262
Capital Markets for Infrastructure	p. 265
Capital Requirements of Sectors	p. 265
Capital Flows of Infrastructure	p. 267
Capital Structure of Infrastructure Sectors	p. 268
Sources of Capital	p. 271
Investment Banking	p. 283
Summary	p. 284
Revenues for the Infrastructure Sectors	p. 287
Flow of Revenues	p. 287
Rate-Setting for Infrastructure-Based Services	p. 289
Rate Regulation	p. 293
Revenue and Cost of Service Analysis	p. 296
Tax Revenues and Subsidies	p. 297
Infrastructure Revenue by Sector	p. 299
Summary	p. 299
Toward the Future
Opportunities and Risks for Infrastructure	p. 303
Infrastructure as a Policy Sector	p. 303
Infrastructure Policy Elements	p. 304
Sector Issues	p. 306
Transformational Issues	p. 307
Data Sources	p. 315
Infrastructure Companies	p. 317
Acronyms	p. 321
References	p. 327
About the Author	p. 341
Index	p. 343
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