Roundtables on Infrastructure Finance & Development - Renewing California's Infrastructure: Finding A Way Forward, October 26, 2007

* Why PPP, why now? * Enabling Legislation * Global Experience * PPP Coordination Agencies * Finding A Way Forward

Agenda

'Invitation Letter and Program Agenda'

MS Word file (0.1 MB)

Presentations

'Dynamic Influence Mapping of PPP Stakeholders' presentation by Vit Henisz

presentation pdf

'Enabling Legislation in California' presentation by Geoffrey S. Yarema

presentation pdf

'The Infrastructure Ontario and Partnerships BC Models' presentation by Bert Clark and Grant Main

presentation pdf

'(Relevant) Lessons from Latin America's Infrastructure PPPs' presentation by Antonio Vives

presentation pdf

'Brainstorming Session' presentation compiled in realtime by CRGP Grad Students

presentation pdf (0.1 MB)

Other Materials

State of California Debt Affordability Report, by the Office of the Treasurer, 2007
This is the report from Paul Rosenstiel's office that sketches out provisional ideas for financing public infrastructure backed by user-fees.

PFI: strengthening long-term partnerships, by United Kingdom HM Treasury, 2006
Reviews the PFI program in the UK, confirms that the Government sees PFI continuing to comprise around 10-15 per cent of total investment in public services, and concludes after investigating 500+ projects that users are satisfied, public authorities are reporting good overall performance and high levels of satisfaction against the contracted levels of service, that services contracted for are appropriate, and that the incentivization within PFI contracts is working.

America's Infrastructure Strategy: Drawing on History to Guide the Future, by CRGP-KPMG, 2007
Reviews the 200 year history of infrastructure finance and development in America and concludes that private participation in infrastructure was a part of America's heritage long before the emergence of the design-bid-build and municipal finance models.

Infrastructure to 2030: Main Findings and Policy Recommendations, by OECD, 2007 (not free, must be purchased)
This is the publication referenced by Peter Luchetti during the workshop that shows the "2.5% of GDP" is the benchmark for OECD countries investment in infrastructure.

Financial Structuring of Infrastructure Projects in Public-Private Partnerships, by Antonio Vives et al., Inter-American Development Bank, 2006
A framework for understanding the full solution-space of available PPP modalities and for selecting the most feasible modality given the array of host country variables (presence of rule of law, political risk, fiscal space, willingness to pay tolls, etc.), based on lessons learned at Inter-American Development Bank over 20 years of structuring public-private partnerships in Latin America.

Granting and Renegotiating Infrastructure Concessions: Doing it Right, by J. Luis Guasch, World Bank Institute, 2004
Provides a "how-to" for government agencies, based on empirical research of the actual performance of 1000+ infrastructure concessions.

Investing in California's Infrastructure, by Peter Luchetti, Bay Area Council, 2006
Reviews the need for infrastructure in California to protect California's competitive position in the global economy, the benefits of the UK PFI program, and the circumstances under which a UK-style PFI program could be beneficial for California.

Governance in Public Private Partnerships for Infrastructure Development, UNECE, 2005
Articulates the challenge and the need of helping government agencies develop new public management skills in order to successfully implement PPPs and PPP programs. It also provides a very practical toolkit for benchmarking and certifying the success of PPPs. It was written and re-written multiple times over a mutli-year time period and reads beautifully.

New Opportunities and New Challenges for Infrastructure, Speech by Rt Hon Alan Milburn MP to the KPMG Conference, Oct. 2007
Reviews the political and policy environments in which the infrastructure industry operates and explains the challenges that future governments will face given global trends.

On Investing in California's Future: Leveraging All Resources to Build for the Future, Article in the San Francisco Chronicle, Oct. 26, 2007
Coincidentally, this article appeared in the Chronicle on the same day as our workshop.

Workshop Overview

The Workshop was designed to bring together a group of senior-level, forward-thinking experts from industry, academia, and government to develop a strategy for infrastructure renewal in California, to contemplate the broader enablement of PPPs within the State, and to consider possibilities for public finance backed by user fees.

Participation in the Workshop was by invitation only, and participants were selected based on their acknowledged commitment to public service.

Numbers were limited to a small and select few to encourage real discussion and debate, with an emphasis on several questions:

What approaches exist for infrastructure renewal in California? Are PPPs a viable alternative?
With the current legislation that is in place, what is entitled to happen with respect to private participation in infrastructure?
How much private involvement already exists, at the grassroots level?
What would need to be done in order to more broadly enable the activity?
What were the experiences with PPPs in the Asia, Latin America and the UK during the 1990s? How do these experiences apply to California?
What is the role of the PPP Coordination Agencies that have been instituted in Canada, in short-listing, approving, and monitoring projects?
What would a fully enabled PPP legislation look like?
How should the State go forward? What should the Governor present to the public in January? What should the strategy be?
What about a proposal for an Infrastructure Finance Authority, with the public finance of projects backed by user fees?

Participants were asked to come to the event prepared to focus on the needs of the State and to lay their political, corporate and self-interests aside. Stanford University offered a neutral venue for a collaborative, non-partisan discussion.

The Workshop was moderated by the dynamic duo of Gregory Keever (Partner, Akin Gump Strauss Hauer & Feld LLP) and Peter Luchetti (Board of Directors, Bay Area Economic Forum) and involved much interactive discussion.

Posted by rjorr at October 26, 2007 3:08 PM