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.
Table of Contents:
Preface xiii
Acknowledgments xvii
CHAPTER 1 An Introduction to Infrastructure Finance 1
What Is Infrastructure Business? 1
Infrastructure Then and Now 3
A System of Systems 7
Sector Structure and Size 9
Estimating the Per Capita Cost 11
Need for New Approaches 11
Summary 13
PART ONE Infrastructure Sectors and Investments
CHAPTER 2 Models of the Infrastructure Sectors 19
Classification System 19
Infrastructure and Service Organizations 22
Business Models of Infrastructure Subsectors 24
How Infrastructure Systems Serve the Built Environment 26
Matrix of Owners and Users of Infrastructure Systems 27
Infrastructure and Services: Structures and Equipment 28
Infrastructure Support Sector 30
Summary 33
CHAPTER 3 Infrastructure and the Constructed Environment 37
Land Uses in the Built Environment 37
Growth and Change in Urban Areas 39
Financial Assets in the Built Environment 45
Housing Finance as an Engine of Development 47
Commercial and Central City Development 55
Impact Fees and the Growth-Pays-Its-Own-Way Philosophy 58
Future Cities and Infrastructure 60
Summary of Issues and Outlook 62
CHAPTER 4 Transportation Sector 65
Sector Structure and Size 65
Road and Highway Systems 69
Mass Transit Systems 79
Air Travel and Airports 84
Intercity Rail Systems 87
Intercity Bus Transportation 90
Water-based Transportation 91
Pipelines 92
Sector Issues and Outlook 92
CHAPTER 5 Telecommunications Sector 97
Why Telecommunications Is an Infrastructure Sector 97
Then and Now 99
Sector Structure and Size 100
Internet 102
Telecommunication Companies 102
Sector Issues and Outlook 104
CHAPTER 6 Energy Sector 109
Sector Structure and Size 109
Energy Trends 114
Electric Power Industry 116
Natural Gas Industry 119
Petroleum Industry 121
Coal Industry 122
Nuclear Power Industry 124
Renewables 126
Energy Storage 127
Hydrogen Energy 129
Sector Issues and Outlook 129
CHAPTER 7 Water and Wastewater Sector 135
Then and Now 135
Sector Structure and Size 137
Financial Framework of the Sector 141
Financial Issues 144
Business Profiles 145
Water Industry Support Businesses 149
Privatization in the Water Sector 152
Investing in Water as a Commodity 154
Industry Policy and Regulation 154
Coordination in the Water Sector 155
Sector Issues and Outlook 156
CHAPTER 8 Waste Management Sector 161
Sector Structure and Size 161
Categories of Solid Wastes 162
Recycling and the Materials Industry 169
Sector Issues and Outlook 170
CHAPTER 9 Infrastructure and the Construction Industry 173
Then and Now 173
The Construction Industry Today 175
Organization of the Industry by Function and Sector 179
Organization by Business Lines 180
Project Delivery and Finance 182
Construction Companies 185
Sector Issues and Outlook 191
CHAPTER 10 Investor and Business Opportunities in Infrastructure 193
Then and Now 193
Bond Market 195
Stocks of Infrastructure Companies 198
Infrastructure Funds 206
Infrastructure Indices 210
Commodity Markets 212
Mortgage-backed Securities 213
Private Equity and Infrastructure 213
The Infrastructure Support Sector 214
Infrastructure Investment Media 214
Corruption in the Infrastructure Business 215
International Spending Plans 216
Investment Issues and Outlook 216
PART TWO Financing Infrastructure
CHAPTER 11 A Scorecard for Infrastructure Performance 223
Tracking Infrastructure Performance 223
What Systems to Measure? 225
What Are the Performance Standards? 226
How Much Do They Cost? 230
How Ready Are They to Perform? 230
Financial and Economic Data on Infrastructure 234
Infrastructure Scorecard 239
Summary 243
CHAPTER 12 Financial Models for Infrastructure Organizations 245
General Management Model 246
General Financing Model 248
Sector Financing Models 251
How Governments Can Improve Infrastructure Performance 255
Public-Private Partnerships 260
Regulation 262
Summary 262
CHAPTER 13 Capital Markets for Infrastructure 265
Capital Requirements of Sectors 265
Capital Flows of Infrastructure 267
Capital Structure of Infrastructure Sectors 268
Sources of Capital 271
Investment Banking 283
Summary 284
CHAPTER 14 Revenues for the Infrastructure Sectors 287
Flow of Revenues 287
Rate-Setting for Infrastructure-Based Services 289
Rate Regulation 293
Revenue and Cost of Service Analysis 296
Tax Revenues and Subsidies 297
Infrastructure Revenue by Sector 299
Summary 299
PART THREE Toward the Future
CHAPTER 15 Opportunities and Risks for Infrastructure 303
Infrastructure as a Policy Sector 303
Infrastructure Policy Elements 304
Sector Issues 306
Transformational Issues 307
APPENDIX A Data Sources 315
APPENDIX B Infrastructure Companies 317
APPENDIX C Acronyms 321
References 327
About the Author 341
Index 343
