Introduction The Infrastructure Challenge Chronic underinvestment in aging urban infrastructure Increasingly strained public resources The Need for Greater Resilience Higher risks of severe weather events Emerging long-term impacts of climate change Growing urban populations and changing local needs The RE.invest Opportunity Bridging the gap between planning and investment Enhancing cross-sector integration for resilience Attracting private investors to priority infrastructure Reaching underserved and vulnerable communities 2
Investing in Resilience What makes resilient infrastructure investments different from traditional infrastructure projects? Not only about large projects; lots of small pieces and parts Emphasis on flexible networks and whole systems Costs and benefits are spread out across sectors Need for coordination across sectors and geographic areas to prevent cascading failures Success is often something that doesn t happen What makes RE.invest different from other green and resilient infrastructure programs? Focusing on new models of systems not project finance Aggregating projects into investable portfolios Sequencing and delivery matters; building new vehicles 3
The RE.invest Initiative Locally Focused: Addressing city & community needs 2-year initiative funded by the Rockefeller Foundation Focused on delivering local solutions Technical Assistance Financial Innovation Policy Support Collaboratively Designed: RE.invest Team+Partner Cities Action Oriented: On-the-ground steps to build resilience National Strategy: Partner Cities as national models Local Implementation: Catalyzing future infrastructure procurements and cross-sector public-private partnerships 4
Goals of RE.invest Ease the burden on government by bringing together technical experts from inside and outside government Mobilize resources to protect communities by aligning public and private investment Increase the resilience of vulnerable cities by taking a systems approach that can offer a national model for infrastructure planning, delivery, and investment Improve integrated planning capacity at the local level by creating a template for cross-sector design and implementation 5
RE.invest Partner Cities 6
The RE.invest Team Policy c.dots development Engineering Bechtel Corporation Legal Akin Gump Strauss Hauer & Feld Finance Wall Street Without Walls 7
The RE.invest Process - Connecting the Dots Aligning needs + aggregating projects = mobilizing investment 8
Integrated Systems Engineering Identify opportunities to integrate high-priority infrastructure projects across sectors Water: Stormwater, wastewater, drinking water Telecom: Communications and broadband Energy: Electricity and fuels Transportation: Roads, tunnels, transit Other critical systems, needs, and local risks Develop holistic solutions and integrated design options Creating multiple benefits and direct sources of revenue Capturing efficiencies, savings, and reducing transaction costs Sequencing projects to maximize value and minimize risk 9
Public-Private Partnership Design Innovative approach to public-private partnerships New model for resilient infrastructure delivery that is responsive to the core priorities of local governments, private investors, developers, and communities Building new Community Investment Vehicles (CIVics) to: Bundle and aggregate infrastructure projects city-wide Ensure secure transactions at-scale Support effective cross-sector project delivery Create community value and public trust Maintain investor confidence Enhance resilience and long-term system performance 10
Mobilizing Private Finance Investor Interests: Large-scale, long-term, low-risk deals Cash Flow: Combining multiple revenue streams Direct Revenues: Aggregating user fees & traditional revenue sources across large portfolios of real assets Indirect Revenues: Generating cross-sector efficiencies Avoided Losses: Capturing current+future resilience benefits Deal Structures: Aligning public and private resources to generate up-front investment capital and long-term value Structured and layered finance models (municipal debt, private equity, and other sources of capital) Other instruments (tax incentives, credit enhancements) 11
The Path Forward Partner City: Project prioritization, opportunity identification Sectors (e.g. stormwater, telecom, electricity, other?) Geographic areas (e.g. eco-districts, brownfields, other?) Engineering team: Systems analysis and iterative design Data sharing & technical coordination meetings Regular working discussions among RE.invest engineering, legal, and finance team and RE.invest Partner Cities Iterative refinement of infrastructure options, costs, benefits Legal team: Community Investment Vehicle (CIVic) structure Finance team: Public/private finance options development 12
Questions? Contact: Elle Beard, RE.invest Project Manager elle@cdotsdevelopment.com