how to save a planet - on a budget: hour 2: public private partnerships for renewable infrasture,...
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How to Save a Planet – On a Budget
Brought to you by
#GreenFinance
• Stimulus That Works: Public-Private Cooperation for a Greener Economy
• Renewable ROI: The Economic Case for Renewable Infrastructure
Hour 2 (10:15 – 11:15 EST):
About this Webinar
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About Our Speakers
#TECLive#GreenFinance
Jo Danko is CH2M HILL’s Global Director for Sustainable Solutions. Jo helps the firm develop goals, strategies, key performance indicators, and targets for sustainability and measures performance against those goals. Jo actively engages in educating employees and raising awareness of sustainability issues.
Andrew Carman is Head of Americas for the Project & Structured Finance Infrastructure,Cities and Industry team at Siemens Financial Services. Prior to this role, Mr. Carmanwas Senior Vice President and General Manager, responsible for SFS Inc.’s EquipmentFinance group.
Kirk H. Edelman is the president and CEO of Siemens Financial Services, responsible for leading Siemens’ commercial finance and leasing business across North America. Mr. Edelman previously served as SVP of the company’s Energy Finance business, and has more than 20 years of finance experience focusing on energy, natural resources and infrastructure finance.
Lane Burt is Technical Policy Director at the U.S. Green Building Council. A mechanical engineer by training, Lane brings extensive technical and political knowledge to USGBC's advocacy and policy shop, having helped draft legislation related to energy efficiency including provisions of the Recovery Act and the American Clean Energy and Security Act.
Dr. Thiemo Gropp is a co-founder of the DESERTEC Foundation. He has been following the development of renewable energies for many years. As an entrepreneur he has built and led several nationally as well as internationally successful technology companies. Dr. Gropp studied physics in Germany and the USA and has a PhD in biochemistry.
Financing Infrastructure - a Siemens Financial Services Perspective
Andrew Carman
Head of Americas, Project & Structured Finance Infrastructure & Cities and Industry
Under the roof of Financial Services we providean extensive portfolio of financial solutions
Financial ServicesCopyright © Siemens AG 2011. All rights reserved
Page 6
Increasing importance of financing in city-context
Budget constraints at cities with concurrently essential needs for action lead to high importance of private sector finance
Europe
Asia-Pacific
North and South America
Africa, Middle East, CIS
Source: SFS Paper, Sustainable Cities, 2011 Financial ServicesCopyright © Siemens AG 2011. All rights reserved
Page 7
Significant investment gap as a consequence
1) Funds that governments can allocate in the development of infrastructures2) Funds potentially required from the private sector, including equity and deptSource: BCG analysis
Investment gap2)
$20-25 trillion
Public funding1)
$15-20 trillion
Global infrastructure investment needs until 2030
$35-40 trillion
Including $7-8 trillion for transport infrastructure
Financial ServicesCopyright © Siemens AG 2011. All rights reserved
Thank you for your attention.
Financing Green Infrastructure
Joseph DankoSenior Vice PresidentOperations Director, Urban ProgramsCH2M HILL
• More than 30,000 employees• US$7 billion in revenue• 100 percent owned by our employees• Performing work in more than 140 countries• Delivering extraordinary projects, including
– London 2012 Olympic and Paralympic Games– Panama Canal Expansion Program
CH2M HILL is a global leaderin full-service planning, consulting, design, design-build, operations, and program management services
CH2M HILL – Copyright 2011
New Revenues
Financing & Financial
Management
Procurement Strategies
Optimized & Sustainable Financial Plan
Expenditures
User Fees & Fares
Other Revenues
Local, State & Federal
Taxes
Federal Grants
Existing Funding
CH2M HILL Model for a Sustainable Financial Plan
CAPEXCost of Public
Disruption
OPEX & Life Cycle Costs
Industrial Capacity
Development Opportunities
Other Revenues
New Grant Revenues Taxation
CH2M HILL – Copyright 2011
• $1.4 billion,11-km-long project — Ontario’s single largest highway investment• P3 agreement will deliver design,
construction, finance, and long-term maintenance of the corridor• Includes recreational trails, green
space, and habitat protection• Incorporation of a Greenroads
certification requirement to ensure that sustainability is built into the entire process
Windsor Essex Parkway, Procured under a P3 Model
12
Client: Infrastructure Ontario and Ministry of Transportation OntarioLocation: Windsor, Ontario
CH2M HILL – Copyright 2011
• Comprehensive “green” infrastructure program captures stormwater and reduces impacts of runoff to the combined sewer system
• More than 60 green infrastructure projects completed or under construction in 2011–66,000 sf green roof on Convention Center–Capture and reuse system at the Onondaga
County War Memorial Arena; “green” Ice Rink
Onondaga County Green Infrastructure Program
“Save the Rain” Program
13
Client: Onondaga CountyLocation: Syracuse, New York
Porous concrete parking surface at City Lot # 3, Syracuse, NY
CH2M HILL – Copyright 2011
• Green Improvement Fund: offers grants to private property owners in the combined sewer districts
• Incentivizes green infrastructure on private property by funding cost gap between gray and green infrastructure improvements
• Private landowners enter contract with County to maintain green infrastructure
“Save the Rain” P3 Components
P3 Components
14
Client: Onondaga CountyLocation: Syracuse, New York
Porous Basketball Courts - Skiddy Park, Syracuse, NY
CH2M HILL – Copyright 2011
Blighted Site Redeveloped into Menomonee Valley Industrial Center & Community Park
Client: City of MilwaukeeLocation: Milwaukee, Wisconsin
Converted property blighted by more than 125 years of locomotive maintenance into a new industrial center rich in recreational, economic and natural assets
Redevelopment will bring up to 1,500 jobs Created more than $120 million in
recreational, aesthetic, and ecological value for the people of Milwaukee
Reused materials such as crushed concrete, glass, timber, and brick, avoiding landfill
Stormwater management creates habitat, returns diverse/beneficial species to area
Created new “green” recreational spaces
MVIC has won numerous awards, including the 2011 Innovation in Sustainable Civil Engineering Award from the American Society of Civil Engineers
CH2M HILL – Copyright 2011
Creative Financing was Critical to MVIC’s Success
• The City created a $16 million Tax Increment District to fund roads and infrastructure and to remediate environmental contamination
• Most new MVIC businesses have received New Market Tax Credit loans through the Milwaukee Economic Development Corp.
• $24 million was obtained through 20 local, state, and federal grants, and dozens of private donations
• Additional savings through value engineering, new-found revenue streams, and materials reuseCH2M HILL – Copyright 2011
Financing Clean Energy
Financial ServicesCopyright © Siemens AG 2011. All rights reserved
Financing Clean Energy
Kirk H. Edelman
CEO, Project & Structured Finance – Energy
Siemens Financial Services
SFS
SFS partner(via SAP Financing)
Project-related presence
Siemens Financial Services GmbH
Products Asset Finance & Leasing Vendor Finance Structured Finance Asset-Based Lending
Asset Management Private Equity Treasury Solutions
Project & Equity Participations Project & Export Finance Industrial Insurance Solutions Private Finance Solutions
Financial ServicesCopyright © Siemens AG 2011. All rights reserved
Under the roof of Financial Services we providean extensive portfolio of financial solutions
Financial ServicesCopyright © Siemens AG 2011. All rights reserved
Siemens Financial Services Supports Windy Flats Wind Farm Project Expansion
Challenge Cannon Power Group, an existing Siemens
Energy, Inc. customer, sought funding options to expand its Windy Flats wind farm project in Washington state.
Siemens Financial Services (SFS) outlined a creative financing structure for the project’s expansion.
Financial ServicesCopyright © Siemens AG 2011. All rights reserved
Solution SFS provided a $178 million senior secured
credit facility to fund the Windy Flats project expansion.
The funds were used to expand the project with additional Siemens wind turbines and to recapitalize a portion of the existing credit facility.
Siemens Financial Services Supports Windy Flats Wind Farm Project Expansion
Financial ServicesCopyright © Siemens AG 2011. All rights reserved
Benefits Siemens performed as the single supplier for
both the equipment and funding for the project expansion.
Upon completion, Cannon’s wind farm projects will provide a combined total of 400 megawatts of power to homes in Southern California.
Siemens Financial Services Supports Windy Flats Wind Farm Project Expansion
Financial ServicesCopyright © Siemens AG 2011. All rights reserved
Lean EfficiencyNov 30th, 2011 for the Energy Collective &
Sustainable Cities Collective
Lane Wesley Burt, P.E. Technical Policy Director
U.S. Green Building Council
20032004
20042005
20052006
20062007
20072008
20082009
20092010
20100
50
100
150
200
250
300
350
400
450
500
Growth in LEED EB:O&M Certified SpaceCe
rtifie
d Fl
oor A
rea
(mill
ion
sqft
)
25 PROJECTS
50 PROJECTS
100 PROJECTS
$75,000
$90,000
$110,000
150,000 AVG. SF 300,000 AVG. SF
LEED VOLUME PROGRAM: COST SAVINGS VS. ONE-OFF
LEED VOLUME PROGRAM PROJECT BUNDLE PRICING
44% SAVINGS
66% SAVINGS
79% SAVINGS
70% SAVINGS
82% SAVINGS
89% SAVINGS
$75,000
$90,000
$110,000