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Financing Water to 2030: Charting the changing flows of public and private capital to water infrastructure

Financing Water to 2030: Charting the changing flows of public and private capital to water infrastructure

The paradigm for financing water infrastructure is changing. As the need for investment is becoming more urgent, governments are finding themselves increasingly constrained by their over stretched balance sheets. Meanwhile, demographic change is driving demand for investments which can deliver a steady yield with a low degree of risk – the kind of profile that only water can offer. All of these trends point in the same direction: the growth of private investment and the arrival of new funding mechanisms in the water infrastructure sector.

Financing Water to 2030 and its accompanying databases provide you with a detailed understanding of how capital flows in the water sector will change in the next 10 years, and where the finance sources & private sector opportunities for water are now. The digital report examines how much investment is needed to achieve the SDGs for water and sanitation, and the potential sources of this investment. Analyse the financial models, organisations, and risks at play in infrastructure finance to find the most viable markets and investment strategies for your organisation, as the world acts to harness the potential of private finance in water.

Digital (PDF) Report + 4 Accompanying Databases


PUBLICATION INFORMATION
EXECUTIVE SUMMARY
A GROWING URGENCY
A growing urgency
A GROWING OPPORTUNITY
A growing opportunity
A NEW APPROACH
A new approach: blended finance and sector reform
Financing trends
Developed world
Developed world (cont.)
Developing world
Developing world (cont.)
WINNERS AND LOSERS
Winners and losers
THIS REPORT
This report
INTRODUCING WATER FINANCE
WHAT MAKES WATER FINANCE SPECIAL?
What makes water finance special?
Longevity of assets
Political control
Cycle of utility decline
Cycle of utility decline (cont.)
The inevitability of water investment
Upside investment
CAPITAL FORMATION
Financial flows in the water sector
Sources of finance: Operating income (equity)
Sources of finance: Connection charges
Sources of finance: Debt finance
Sources of finance: Bond finance
Green bond issuances for water are growing
Government lending
Government lending (cont.)
Capital flows into water infrastructure, 2013-2017
The capital formation of the water sector, 2018
INVESTMENT NEEDS
Asset replacement and renewal
System upgrades and improvements
Service expansion
Capital expenditure forecast by sector, 2016-2023
Capital expenditure forecast by region, 2016-2023
The sustainable development goals
Global and regional water investment requirement (2018-2030)
Trends in water finance to 2030
Global sources of finance in 2030
Sources of finance in 2030 by region
Paying for water in 2030
Water tariff trends
Achieving SDG 6: Bankability & delivering bankability
Delivering bankability (cont.)
Affordability
CONSOLIDATION
Fragmentation and consolidation
Case study: Japan
Case study: Japan (cont.)
Case study: France
Case study: Romania
Case study: United States
Case study: United States (cont.)
Case study: United States (cont.)
METHODOLOGY
Forecast methodology
Forecast methodology (cont.)
Forecast methodology (cont.)
Forecast methodology (cont.)
MARKET SPOTLIGHT: ARGENTINA
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
Public finance (cont.)
Development finance
PRIVATE FINANCE
Private finance
Private sector viewpoint
Reasons for optimism
MARKET SPOTLIGHT: AUSTRALIA
NEED TO KNOW
Investment trends
Water infrastructure financing
Water infrastructure financing (cont.)
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
Utility funding (cont.)
PUBLIC FINANCE
Public finance
PRIVATE FINANCE
Private finance
Major Australian PPP completions by capacity
Private utilities
The public private spectrum
Private sector involvement
MARKET SPOTLIGHT: BRAZIL
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
Public finance
PUBLIC FINANCE
Development finance
PRIVATE FINANCE
Private finance & privatisation of utilities
Brazil’s privatisation past
Brazil’s privatisation past (cont.)
Concession contracts
Top five private water operators active in Brazil
Public-private partnerships
Public-private partnerships (cont.)
MARKET SPOTLIGHT: CANADA
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
Public finance (cont.)
PRIVATE FINANCE
Private finance
The Canadian Infrastructure Bank
Public-private partnerships
Past and upcoming PPP projects
MARKET SPOTLIGHT: CHILE
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
PRIVATE FINANCE
Private finance
MARKET SPOTLIGHT: CHINA
NEED TO KNOW
Investment trends
Water infrastructure financing
Wastewater sector targets to be met by 2020
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
Public finance (cont.)
Development finance
Pioneering companies in China’s water and wastewater sector
Pioneering companies in China’s water and wastewater sector (cont.)
PRIVATE FINANCE
Private finance
The development of the Chinese PPP market
Public-private partnerships
Public-private partnerships (cont.)
MARKET SPOTLIGHT: COLOMBIA
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
Financing recent water projects
PUBLIC FINANCE
Public finance
Development finance
PRIVATE FINANCE
Private finance
Private finance (cont.)
MARKET SPOTLIGHT: EGYPT
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public & development finance
African Development Bank (AfDB)
European Investment Bank (EIB)
European Bank for Reconstruction and Development (EBRD)
PRIVATE FINANCE
Private finance
New Cairo
The end of PPP process for water & other uses of private finance
MARKET SPOTLIGHT: FRANCE
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
Public finance (cont.)
PRIVATE FINANCE
Private finance
Private finance (cont.)
MARKET SPOTLIGHT: GERMANY
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Organisational forms in the German water and wastewater sector
Organisational forms in the German water and wastewater sector (cont.)
Investment in the public water supply
Utility funding (cont.)
Utility funding (cont.)
PUBLIC FINANCE
Public finance
PRIVATE FINANCE
Private finance
MARKET SPOTLIGHT: INDIA
NEED TO KNOW
Investment trends
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Central government initiatives
Central government initiatives (cont.)
State and city-level government financing
Development finance
PRIVATE FINANCE
Private finance
Private finance (cont.)
Private finance (cont.)
Private finance (cont.)
MARKET SPOTLIGHT: INDONESIA
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
Development finance
PRIVATE FINANCE
Private finance
PPP/KPBU
B2B contracts and concessions
Timeline of key legal developments on water privatisation & the Jakarta concessions
MARKET SPOTLIGHT: IRAN
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
Development finance
Islamic Development Bank (IsDB)
The World Bank
ECO Trade and Development Bank
PRIVATE FINANCE
Private finance & BOO
Build-own-operate (cont.)
Buyback contracts
International private finance
Sanctions and foreign investment
MARKET SPOTLIGHT: ITALY
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
Development finance
PRIVATE FINANCE
Private finance
MARKET SPOTLIGHT: JAPAN
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
PRIVATE FINANCE
Private finance
Private finance (cont.)
Private finance (cont.)
Potential water and wastewater concessions in Japan
Private finance (cont.)
MARKET SPOTLIGHT: MALAYSIA
NEED TO KNOW
Investment trends
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding overview
Water sector structure under 2006 Water Services Industry Act
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
Public finance (cont.)
Percentage of non-revenue water across Malaysia in 2016
PRIVATE FINANCE
Private finance
Case study: Outsourcing the sukuk
MARKET SPOTLIGHT: MEXICO
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Federal funding
Federal funding (cont.)
Local funding
Development finance
Development finance (cont.)
PRIVATE FINANCE
Private finance
Private finance (cont.)
MARKET SPOTLIGHT: MOROCCO
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
Case study: ONEE
Utility funding (cont.)
Case study
PUBLIC FINANCE
Public finance
Development finance
Development finance (cont.)
PRIVATE FINANCE
Private finance
PPP law 86-12
MARKET SPOTLIGHT: NIGERIA
NEED TO KNOW
Investment trends
Water infrastructure financing
Water infrastructure financing (cont.)
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
Development finance
Development finance (cont.)
PRIVATE FINANCE
Private finance
Private finance (cont.)
Case study: (back to) a PPP approach
MARKET SPOTLIGHT: OMAN
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
Development finance
PRIVATE FINANCE
Private finance
IWP/IWPP
IWP/IWPP (cont.)
PPP
MARKET SPOTLIGHT: PERU
NEED TO KNOW
Investment trends
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
Public finance (cont.)
Development finance
PRIVATE FINANCE
Private finance
PPPs for WTPs
Peru’s planned desalination PPPs
MARKET SPOTLIGHT: PHILIPPINES
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
Structure of the PWRF
Development finance
PRIVATE FINANCE
Private finance
Private finance (cont.)
The public-private partnership (PPP) policy shift in the Philippines
Joint ventures and private franchises
MARKET SPOTLIGHT: QATAR
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
PRIVATE FINANCE
Private finance & IWP / IWPPs
IWP/IWPP financing
IWP/IWPP financing (cont.)
Ownership structure of Ras Laffan IWPPs
Draft PPP Law
MARKET SPOTLIGHT: SAUDI ARABIA
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public & development finance
PRIVATE FINANCE
Private finance
Case study: Marafiq IWPP
IWPs and IWPPs
IWPs and IWPPs (cont.)
Brownfield privatisation and asset bundling
MARKET SPOTLIGHT: SINGAPORE
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
PUB finances
Deep Tunnel Sewerage System (DTSS) Phase 2
PRIVATE FINANCE
Private sector participation
Private sector participation (cont.)
MARKET SPOTLIGHT: SOUTH AFRICA
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
Development finance
PRIVATE FINANCE
Private finance
Utility concessions
Potential areas for private sector participation
MARKET SPOTLIGHT: SPAIN
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
Utility funding (cont.)
PUBLIC FINANCE
Public finance
PRIVATE FINANCE
BOTs
Municipal water concession market
Municipal water concession market (cont.)
MARKET SPOTLIGHT: TUNISIA
NEED TO KNOW
Investment trends
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public and development finance
Development finance
PRIVATE FINANCE
Private finance
PPP pilot projects
Wastewater infrastructure concessions
MARKET SPOTLIGHT: UNITED ARAB EMIRATES
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
Utility funding (cont.)
PUBLIC FINANCE
Public & development finance
PRIVATE FINANCE
Private finance in Abu Dhabi
Abu Dhabi
IWPs and IWPPs in Abu Dhabi
Refinancing
Outside Abu Dhabi
MARKET SPOTLIGHT: UNITED KINGDOM
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
PRIVATE FINANCE
Private finance
MARKET SPOTLIGHT: UNITED STATES
NEED TO KNOW
Investment trends
Water infrastructure financing
Public construction spending on water and wastewater infrastructure
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
Utility funding (cont.)
PUBLIC FINANCE
Public finance
Public finance (cont.)
The Trump administration’s infrastructure plan
PRIVATE FINANCE
Private finance
Public-private partnerships
Investor-owned utilities
Investor-owned utilities (cont.)
Concessions and leases
MARKET SPOTLIGHT: VIETNAM
NEED TO KNOW
Investment trends
Water infrastructure financing
Country financing overview
Country financing overview (cont.)
UTILITY FUNDING OVERVIEW
Utility funding
Utility funding (cont.)
PUBLIC FINANCE
Public finance
Development finance
Development finance (cont.)
PRIVATE FINANCE
Private finance
Public-private partnership
Public-private partnership (cont.)
Direct investment
Equitisation
Water, sewerage and drainage utilities planning equitisation by 2021
DEVELOPMENT FINANCE: INTRODUCTION
IN A NUTSHELL
In a nutshell
DEVELOPMENT FINANCE
Development finance
Flows involved in blended finance
RISKS & OBSTACLES
Risks and obstacles
Case study: EIB invests in Italian water utilities, including BrianzAcque
SUSTAINABLE TOOLS
Sustainable tools for blended finance
Sustainable tools for blended finance (cont.)
Case study: Risk mitigation scheme with the EBRD
Case study: Dhaka Water Supply Sector Development Program
Case studies: Pooled finance
The role of DFIs and blended finance
WHY NOW?
Why now?
A brief history of blended finance
DFI PROFILES
DFI profiles
DFI average annual water sector lending, 2012-2016
DFI average annual lending, 2012-2016 (cont.)
Comparison of DFI products
Comparison of DFI products (cont.)
Comparison of DFI products (cont.)
DEVELOPMENT FINANCE: MULTILATERAL ORGANISATIONS
ASIAN INFRASTRUCTURE INVESTMENT BANK (AIIB)
Introduction and strategy
Introduction and strategy (cont.)
Approved water sector projects
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
EUROPEAN INVESTMENT BANK (EIB)
Introduction and strategy
Introduction and strategy (cont.)
Historical lending to water and sewerage projects
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
EIB: 10 largest individual WSS projects, 2017
EIB: 10 largest individual WSS projects, 2017 (cont.)
ISLAMIC DEVELOPMENT BANK (ISDB)
Introduction and strategy
Introduction and strategy (cont.)
Historical lending to water, sanitation and urban services projects
Products, eligibility and conditions
Special Shari’ah compliant tools
IsDB: WSS projects, 2017
NEW DEVELOPMENT BANK (NDB)
Introduction and strategy
Introduction and strategy (cont.)
Products
PRIVATE INFRASTRUCTURE DEVELOPMENT GROUP (PIDG)
Introduction and strategy
Products, eligibility and conditions
PIDG’s subsidiaries work in different points of project development and execution
GuarantCo Ltd.
Emerging Africa Infrastructure Fund Ltd. (EAIF)
Upstream development: Technical Assistance Facility (TAF) & DevCo
InfraCo Ltd. (InfraCo Africa) & InfraCo Asia Development Pte. Ltd.
WORLD BANK GROUP (WBG)
Introduction
Strategy
Strategy (cont.)
Historical lending to water, sanitation, and waste management projects
International Bank for Reconstruction and Development (IBRD)
IBRD business model
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
IBRD guarantee terms
International Development Association (IDA)
IDA business model
Products, eligibility and conditions
IDA lending terms
World Bank: 10 largest WSS projects, 2017
World Bank: 10 largest WSS projects, 2017 (cont.)
INTERNATIONAL FINANCE CORPORATION (IFC - WORLD BANK GROUP)
Introduction and strategy
Introduction and strategy (cont.)
Historical lending to water and sanitation projects
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
IFC: WSS projects, 2017
MULTILATERAL INVESTMENT GUARANTEE AGENCY (MIGA)
Introduction and strategy
Introduction and strategy (cont.)
Historical lending to water and sanitation projects
Products, eligibility and conditions
MIGA: WSS projects, FY2016
WATER FINANCING FACILITY (WFF)
Introduction and strategy
Introduction and strategy (cont.)
How the WFF works
Products, eligibility and conditions
AFRICAN DEVELOPMENT BANK (AFDB)
Introduction and strategy
Introduction and strategy (cont.)
Funds and initiatives
Historical lending to water and sanitation projects
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
AfDB: 10 largest water supply and sanitation (WSS) projects, 2017
AfDB: 10 largest water supply and sanitation (WSS) projects, 2017 (cont.)
ASIAN DEVELOPMENT BANK (ADB)
Introduction and strategy
Introduction and strategy (cont.)
Introduction and strategy
Historical lending to water and other urban infrastructure services projects
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
Classification of ADB members
ADB: 10 largest WSS projects, 2017
ADB: 10 largest WSS projects, 2017
CARIBBEAN DEVELOPMENT BANK (CARIBANK)
Introduction and strategy
Introduction and strategy (cont.)
Historical lending to water and other urban infrastructure services projects
Products, eligibility and conditions
CariBank: WSS projects, 2017
CENTRAL AMERICAN BANK FOR ECONOMIC INTEGRATION (CABEI)
Introduction and strategy
Introduction and strategy (cont.)
Historical lending to water and other urban infrastructure services projects
Products, eligibility and conditions
CABEI: WSS projects, 2016
DEVELOPMENT BANK OF LATIN AMERICA (CAF)
Introduction and strategy
Introduction and strategy (cont.)
Historical lending to water and sanitation projects
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
CAF: WSS projects, 2016
CAF: WSS projects, 2016 (cont.)
DEVELOPMENT BANK OF SOUTH AFRICA (DBSA)
Introduction and strategy
Introduction and strategy (cont.)
Historical lending to water and sanitation projects
Products, eligibility and conditions
EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD)
Introduction and strategy
Introduction and strategy (cont.)
Historical lending to water and sanitation projects
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
EBRD: WSS projects, 2017
INTER-AMERICAN DEVELOPMENT BANK (IDB)
Introduction and strategy
Introduction and strategy (cont.)
Historical lending to water and sanitation projects
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
IDB country groups, based on GNP per capita in 1997
IDB: 10 largest WSS projects, 2017
IDB: 10 largest WSS projects, 2017 (cont.)
NORDIC INVESTMENT BANK (NIB)
Introduction and strategy
Historical lending to water and sanitation projects
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
NIB: WSS projects, 2017
OPEC FUND FOR INTERNATIONAL DEVELOPMENT (OFID)
Introduction, strategy and products
Introduction, strategy and products (cont.)
Historical lending to water and sanitation projects
OFID: WSS projects
WEST AFRICAN DEVELOPMENT BANK (BOAD)
Introduction and strategy
Historical lending to water and sanitation projects
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
DEVELOPMENT FINANCE: BILATERAL ORGANISATIONS
AGENCE FRANÇAISE DE DÉVELOPPEMENT (AFD)
Introduction and strategy
Introduction and strategy (cont.)
Historical lending to water and sanitation projects
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
AFD: WSS projects, 2017
AFD: WSS projects, 2017 (cont.)
CHINA DEVELOPMENT BANK (CDB)
Introduction and strategy
Introduction and strategy (cont.)
Historical lending to water resources projects
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
DANISH INTERNATIONAL DEVELOPMENT AGENCY (DANIDA)
Introduction, strategy and products
Introduction, strategy and products (cont.)
Historical lending to water and sanitation projects
DANIDA: WSS projects, 2016
DEPARTMENT FOR INTERNATIONAL DEVELOPMENT (DFID)
Introduction, strategy and products
Introduction, strategy and products (cont.)
Historical lending to water and sanitation projects
DFID: 10 largest WSS projects, 2016
DFID: 10 largest WSS projects, 2016 (cont.)
EXPORT-IMPORT BANK OF CHINA (CEXIM)
Introduction, strategy and products
Introduction, strategy and products (cont.)
EXPORT–IMPORT BANK OF KOREA (KEXIM)
Introduction and strategy
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
Terms and conditions for infrastructure loans
JAPAN BANK FOR INTERNATIONAL COOPERATION (JBIC)
Introduction and strategy
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
JAPANESE INTERNATIONAL COOPERATION AGENCY (JICA)
Introduction and strategy
Introduction and strategy (cont.)
Historical lending to water and sanitation projects
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
JICA: 10 newest WSS projects, 2017
JICA: 10 newest WSS projects, 2017 (cont.)
KFW BANKENGRUPPE (KFW)
Introduction and strategy
Introduction and strategy (cont.)
Historical lending to water and sanitation projects
Products, eligibility and conditions
Products, eligibility and conditions (cont.)
KfW: WSS projects, 2017
KOREA INTERNATIONAL COOPERATION AGENCY (KOICA)
Introduction, strategy and products
Introduction, strategy and products (cont.)
Historical lending to water and sanitation projects
KOICA: WSS projects, 2016
KUWAIT FUND FOR ARAB ECONOMIC DEVELOPMENT (KFAED)
Introduction, strategy and products
Introduction, strategy and products (cont.)
Historical lending to water and sewerage projects
KFAED: WSS projects, 2017
NEDERLANDSE FINANCIERINGS-MAATSCHAPPIJ VOOR ONTWIKKELINGSLANDEN NV
Introduction and strategy
Introduction and strategy (cont.)
Products, eligibility and conditions
Products, eligibility and conditions
FMO: WSS projects, 2016
OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC)
Introduction and strategy
Products, eligibility and conditions
Historical lending to water and sanitation projects
OPIC: WSS projects, 2017
SPANISH AGENCY FOR INTERNATIONAL DEVELOPMENT COOPERATION (AECID)
Introduction and strategy
Introduction and strategy (cont.)
Historical lending to water and sanitation projects
Products, eligibility and conditions
Cooperation Fund for Water and Sanitation country groupings, 2017
SPANISH COMPANY FOR DEVELOPMENT FINANCE (COFIDES)
Introduction, strategy and products
Introduction, strategy and products (cont.)
SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY (SIDA)
Introduction and strategy
Historical lending to water and sanitation projects
Products, eligibility and conditions
SIDA: WSS projects, 2017
SWISS DEVELOPMENT AID (SDC & SECO)
Introduction, strategy and products
Introduction, strategy and products (cont.)
Historical lending to water and sanitation projects, SDC
Swiss WSS projects
Swiss WSS projects (cont.)
US AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID)
Introduction and strategy
Historical lending to water and sanitation projects
Products, eligibility and conditions
USAID: 10 largest WSS obligations, 2017
USAID: 10 largest WSS obligations, 2017 (cont.)
PRIVATE FINANCE: REACHING THE OPPORTUNE MOMENT
NEED TO KNOW
Need to know
Capex forecast
THE MOMENT
Reaching the opportune moment for private finance
Top 2017 global infrastructure investors
THE OPPORTUNITIES
Capacity forecast
Capex forecast
Capex forecast
Directory of private finance contracts
Directory of private finance contracts (cont.)
Emerging markets
Emerging markets (cont.)
Emerging markets (cont.)
Established markets
Established markets (cont.)
Perspectives on private participation
RISKS & MITIGATION
Risks
Mitigation techniques
Mitigation techniques (cont.)
Risks and methods of mitigation
PRIVATE FINANCE: MARKET TRENDS
UNPRECEDENTED DEMAND FOR PRIVATE CAPITAL
Unprecedented demand for private capital
Unprecedented demand for private capital (cont.)
Unprecedented demand for private capital (cont.)
Unprecedented demand for private capital (cont.)
UNLOCKING PUBLIC CAPITAL
Unlocking public capital
Structure of Sydney desalination plant deal
Unlocking public capital (cont.)
Bundling brownfield and greenfield
Bundling brownfield and greenfield (cont.)
UNLEASHING PRIVATE PARTICIPATION
Capital expenditure in utility concessions by region, 2009-2023
Water and wastewater concessions
Utility concessions: Top 5 countries by population served, 2018
Utility concessions
Unleashing private participation
Unleashing private participation (cont.)
PRIVATE FINANCE: CAPITAL RECYCLING
CAPITAL RECYCLING
Capital recycling intro
SECONDARY MARKET
Secondary market
Secondary market (cont.)
Selected major acquisitions by Chinese entities since 2016
Selected major acquisitions by Chinese entities since 2016 (cont.)
PROTECTIONISM
Protectionism
Foreign investors exiting China since 2016
EXTERNAL CAPITAL
Bringing external capital into the market
Chinese PPP funds
Other strategies
EXIT STRATEGIES
Exit strategies
Exit strategies (cont.)
PRIVATE FINANCE: INVESTMENT OPPORTUNITIES IN INDUSTRIES
NEED TO KNOW
Global trends and opportunities
Forecast of spending on industrial outsourced services, 2015-2022
MAJOR PLAYERS
Major international industrial water project developers
External equity investors in industrial water infrastructure
Selected private equity-backed deals (cont.)
Selected private equity-backed deals (cont.)
Selected private equity-backed deals (cont.)
CONTRACTS
Models
Clients
Services
Capital and operating expenditure under BOT/BOO contracts, 2015-2022
REGIONAL OPPORTUNITIES
Asia Pacific: China
Asia-Pacific: China (cont.)
Leading industrial park wastewater project developers in China
South-East Asia
South-East Asia (cont.)
Japan and South Korea
Australia
South Asia
Planned industrial private financing opportunities in India
Middle East and Africa
Middle East and Africa (cont.)
North America
Latin America
Europe and Central Asia
PRIVATE FINANCE: CASE STUDIES
BAYONNE CONCESSION
Description and risk
Project structure
Debt specifics and financial solutions
CARLSBAD DESALINATION FACILITY
Description and risk
Project structure
Debt specifics and financial solutions
Outcome
KIGALI BULK WATER SUPPLY
Description and risk
Project structure
Debt specifics and financial solutions
MIRFA IWPP
Description and risk
Project structure
Debt specifics and financial solutions
NEW CAIRO WWTP
Description and risk
Project structure
Debt specifics and financial solutions
New Cairo quarterly sewage treatment charge
NEW TIRUPUR AREA
Description and risk
Project structure
Debt specifics and financial solutions
Outcome
NUNGUA SWRO
Description and risk
Project structure
Debt specifics and financial solutions
Outcome
SHOAIBA 3 EXPANSION 2
Description and risk
Project structure
Debt specifics and financial solutions
VICTORIAN DESALINATION PLANT
Description and risk
Project structure
Debt specifics and financial solutions
Outcome
VISTA RIDGE PIPELINE
Description and risk
Project structure
Debt specifics and financial solutions
Structure of interest rate swaps
PRIVATE FINANCE: INTRODUCTION TO INVESTOR-OWNED UTILITIES
INTRODUCTION
Investor-owned utilities
Investor-owned utilities (cont.)
Challenges
Challenges (cont.)
FORECAST
Forecast
Capital expenditure by investor-owned utilities by country, 2009-2023
PRIVATE FINANCE: INVESTOR-OWNED UTILITIES – UNITED KINGDOM
INTRODUCTION
Introduction
Main WaSCs and WoCs in the UK
Main WaSCs and WoCs in the UK (cont.)
AMP7
New Asset Management Period (AMP7)
DIVERSIFICATION OF FUNDING SOURCES
Diversification of funding sources
Recent bond issues in the UK water market (cont.)
Recent bond issues in the UK water market (cont.)
Diversification of funding sources (cont.)
OWNERSHIP
Ownership
Recent transactions in the UK regulated water market (cont.)
Breakdown of Thames Water’s shareholders, January 2018
PERFORMANCE
Performance indicators, 2017
Outcome performance
PRIVATE FINANCE: INVESTOR-OWNED UTILITIES – UNITED STATES
INTRODUCTION
Introduction
Major investor-owned water utilities in the US
Regulation
Regulatory climate index: State rankings, 2017
Regulation (cont.)
Supportive state regulatory mechanisms for investor-owned utilities in the US
Supportive state regulatory mechanisms for investor-owned utilities in the US (cont.)
OWNERSHIP
Ownership
PERFORMANCE
Performance
Capital investment: American Water
Capital investment: Aqua America
ACQUISITIONS
Acquisitions
Fair market value legislation
Opposition
Selected investor-owned utility M&A activity in the US, 2017
Selected investor-owned utility M&A activity in the US, 2017 (cont.)
PRIVATE FINANCE: INVESTOR-OWNED UTILITIES – CHILE
INTRODUCTION
Introduction
OWNERSHIP
Ownership
Ownership of Chilean water companies, 2016
Ownership of Chilean water companies, 2016 (cont.)
Ownership of Chilean water companies, 2016 (cont.)
Total equity by shareholder in the Chilean water sector, December 2016
PERFORMANCE
Performance data
Performance data (cont.)
Performance data (cont.)
PRIVATE FINANCE: MARKET PLAYERS
ABENGOA
At a glance
Water assets
M&A activity
ALMAR WATER SOLUTIONS
At a glance
FCC AQUALIA
At a glance
Aqualia’s 10 most recent contract wins
M&A activity
SUEZ
At a glance
Currently privately financed projects
Utilities investment portfolio
Utilities investment portfolio (cont.)
10 most recent M&A deals
VEOLIA
At a glance
Currently privately financed projects
Utilities investment portfolio
10 most recent M&A deals
ACCIONA
At a glance
Water assets
Water assets (cont.)
M&A activity
ACWA POWER
At a glance
Water assets
Water assets (cont.)
M&A activity
BEWG
At a glance
10 most recently financed projects
BEWG’s water assets (excluding contracts)
BEWG’s water assets (excluding contracts) (cont.)
10 most recent M&A deals
METITO
At a glance
Notable assets
M&A activity
ITOCHU
At a glance
Water assets
M&A activity
MARUBENI
At a glance
Water assets
Water assets (cont.)
M&A activity
MITSUBISHI
At a glance
Water assets
M&A activity
MITSUI
At a glance
Global portfolio
M&A activity
SUMITOMO
At a glance
Sumitomo’s global water portfolio
M&A activity
TOP DEVELOPERS
Top 50 BOT/BOO project developers
TOP OPERATORS
Top 50 private water operators
TOP THIRD PARTY INVESTORS
Top 100 third-party equity investors in water infrastructure
ACKNOWLEDGEMENTS
INTERVIEWEES
REFERENCES

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