eres 2012 infrastructure and development colin elliot school of the built environment heriot-watt...
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ERES 2012 INFRASTRUCTURE AND DEVELOPMENTColin Elliot
School of the Built Environment
Heriot-Watt University
[email protected] www.sbe.hw.ac.uk
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Agenda• Infrastructure definitions and parameters • relationship with development • Key UK delivery models with examples• What are Attributes matrix:
time/risk/cost/phasing/fundability• Matrix of funding and risk• Future challenges
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Infrastructure defined
…………………. the technical structures that support a society, such as roads, water supply, sewers, electrical grids, telecommunications, and so forth, and can be defined as "the physical components of interrelated systems providing commodities and services essential to enable, sustain, or enhance societal living conditions.
Fulmer, Jeffrey (2009). "What in the world is infrastructure?”
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Infrastructure types and relevance to development
• weak
• Strong • medium
financial physical
otherSocial
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Infrastructure dependence?
physical
institutional
development
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Infrastructure in relation to development
lead
Lag/‘drag’
Synchronised?
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Going Dutch…..but with boats, buses, bikes, trams, trains, underground
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Infrastructure spatial contexts
Spatial • Point e.g. building• Area e.g. town• band e.g. motorway
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Development and infrastructurethe Parallels• Construction cost focussed• Deficit financing character• Long term• Form capital asset class
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Section 106 agreement (planning)
• Example: Westfield Stratford
• Scale: £150 M • Funding: developer• Risk: developer
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Tax Increment Finance
Example: Buchanan Quarter, Glasgow.• Scale: £80 million• local authority finance
• Recoupment through uplift in property tax.
• Risk likely to be with local auth.
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Community infrastructure levyExample: Crossrail*, London• Funding: Government,
private sector, local authority
• Payback and justification: business (BRS) and econ/social benefits
• Risk: limited/sunk cost
• *multiple funding structure
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Planning (Section106) agreement
• Example: King’s Cross, London
• Scale: significant• Funding: developer• Risk: developer
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Private Finance Initiative
• Example: Edinburgh Royal Infirmary
• Scale: £190 M• Funding: private sector• Risk: private sector
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Single Estate Strategy
Example: Canary Wharf• Scale: significant• Funding: developer • Risk: developer• Developer benefits fully from value enhancement
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Funding and risk matrix
PFI TIF/CIL
planning agreement
single estate
Debt Equity Pr
ivat
e
Pu
blic
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Other UK techniques• Business improvement districts• Local asset backed vehicles
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“Prime” Property
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Kinnaird Park
Existing
Parking Shops
Infrastructure opportunities
solar
housing
Green space shops
parking
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Edinburgh Conference CentreThe final piece……….• ….but 25 years in the making.
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Come back in 2014 and catch the tram!