financing infrastructure projects in todayâ€™s environment

Financial ServicesCopyright © Siemens AG 2011. All rights reserved

Financing infrastructure projects in today’s environmentJohannes Schmidt CEO Project and Structured Finance Infrastructure & Cities and Industry,Siemens Financial Services GmbH


Contents

2 Criteria for successful projects

1 Cities and investment needs


Sustainable

Competitive

Livable

The basic needs of a city drive the marketfor intelligent infrastructure solutions

Intermodal mobility / efficient and effective mobility

Sustainable and decentralized energy supply

Efficient water supply and waste management

Security

Rigorous reduced carbon footprint of the entire city (e.g. smart buildings, transportation)

Financing

Requirements are drastically changing from closed island solutions /single products to interlinked intelligent infrastructure solutions


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


Significant investment gap

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 trillionIncluding $7-8 trillion for transport infrastructure


Changes in the financial environment

t€

Credit financing

equity

Increasing complexity

margin (€)

Contract period

Shorter contract periods with higher margins

Increasing own equity


Contents

2 Criteria for successful projects

1 Cities and investment needs


The goal: create win-win situations that produce stable earnings

From an unstable equilibrium…

…to stable earnings

Win-winSituation

+5-10%

Error intolerance


Bangalore International Airport Ltd. (BIAL), India

„From a greenfield to an innovative airport“India’s first airport PPP projectPublic Private Partnership

Overall project managementEngineering, supply, medium and commissioning of e.g. energy supply, medium and low-voltage power distribution, IT-systems etc.Financing participation by SFS

Only 33 months from breaking ground to starting operationsExemplary implementation of an infrastructure project in theemerging market of IndiaProject management and technical solutions from Siemens

Bangalore International Airport Ltd. (BIAL)

• The airport went into operations on 2008 and shows annual growth ratesof more than 30%

• about 13 million passengers a year


Financing for Thameslink Rolling Stock Project

Thameslink is an excellent example to demonstrate how SFS support could provide a unique advantage to the wider group to ensure it secures a significant contract. It shows how a financial partnership with our Sector can lead to overall success for Siemens

The total project will be worth more than ₤3 billion to Industry Mobility. SFS’ strong commitment to the project is reflected in their decision to invest equity, subordinated debt and provide a finance solution for the depot facilities

The Department for Transport (DfT) in UK established a major bid process to procure new rolling stock including the construction and operation of maintenance depots for 20 years. On 16th June 2011 the Minister of State for Transport announced that the preferred bidder for the supply and maintenance of the new Thameslink fleet will be Siemens Plc

Thameslink Rolling Stock Project

Equity & Debt Financing

Total project volume: more than ₤3 billion


Thank you for your attention.

http://www.thecrystal.org


Published by

Siemens Financial Services GmbH

Project and Structured Finance Infrastructure & Cities and IndustryJohannes SchmidtWerner-von-Siemens-Str. 5091052 Erlangen, Germany

Phone +49 (0) 9131-7 37336 Fax +49 (0) 9131 7-37338E-Mail [email protected] www.siemens.com/finance

mailto:[email protected]

http://www.siemens.com/finance

financing infrastructure projects in todayâ€™s environment

Documents