The document proposes a new public-private partnership called ARISE that would mobilize investment from sovereign wealth funds and multilateral development banks to fund sustainable infrastructure projects. It identifies needs for improved transportation and power infrastructure. Barriers to investment are noted along with recommendations to launch ARISE at the Rio+20 conference, including committing to a project preparation fund and policy reforms to enable resilient, sustainable infrastructure development. Potential initial partners and illustrative projects involving bus rapid transit and solar power are outlined.

1. 01/26/2012
Dr. David J. Jhirad
ARISE
A NEW PUBLIC-PRIVATE PARTNERSHIP FOR
INFRASTRUCTURE INVESTMENT
Presented at “Transforming Transportation 2012”, Washington DC

2. THE IMPERATIVE FOR MULTI-FACETED
INNOVATION
Source:

3. additional capacity is substantially higher, reflecting far lower capital costs per MW of
capacity.
INFRASTRUCTURE INVESTMENT NEEDS
Figure 5.13 Investment in new power plants and infrastructure in the New
Investment inPolicies S
new power plants and infrastructure in the New Policies
cenario
Scenario
2011 to 2020 2021 to 2035
$6.8 trillion T&D $10.1 trillion
Coal
4% 8%
7% Gas 8%
8% Oil
8%
44% Nuclear 41%
12%
Wind
13%
Hydro
6%
Solar PV 7%
1% 6% 10%
12% 5%
Other renewables
0%
Investment in new power plants inSource: IEA WEO 2011 increasingly outpaces investment in
non-OECD countries

4. INCREASING DEMAND FOR
TRANSPORT INFRASTRUCTURE
Source: GEF STAP

5. THE NEED FOR LONG-TERM INVESTORS
Source: Columbia CGT

6. WHY ARE SWF A GOOD FIT?
• Uniquely positioned as long-term investors
• Can leverage their large asset base
• Have the intergenerational outlook necessary for large-
scale infrastructure investment
• Prefer to invest in large projects >$500m
• Natural to expand their mission from preserving financial
wealth to include the preservation of environmental wealth
by mitigating climate change
• Have access to the massive amounts of capital
required for transformation to a low carbon
economy

7. WHICH COUNTRIES HAVE AN SWF?
Source: Deutsche Bank

8. Assets Under Management i
Country Fund Name Year AUM in $bn
UAE - Abu Dhabi Abu Dhabi Investment Authority 1976 $627
Saudi Arabia SAMA Foreign Holdings n/a $431
China SAFE Investment Company n/a $347.10 **
Norway Government Pension Fund – Global 1990 $326
Singapore Government of Singapore Investment Corporation 1981 $247.50
Russia National Welfare Fund 2008 $219.90 *
Kuwait Kuwait Investment Authority 1953 $202.80
WHICH ARE THE
China China Investment Corporation 2007 $190
China - Hong Kong Hong Kong Monetary Authority Invst Portfolio 1998 $173
LARGEST SWF
Singapore Temasek Holdings 1974 $85
UAE - Dubai Investment Corporation of Dubai 2006 $82
China National Social Security Fund 2000 $77.90
Libya Libyan Investment Authority 2006 $65
Qatar Qatar Investment Authority 2003 $62
Algeria Revenue Regulation Fund 2000 $47
Australia Australian Future Fund 2004 $42.20
Kazakhstan Kazakhstan National Fund 2000 $38
Brunei Brunei Investment Agency 1983 $30
France Strategic Investment Fund 2008 $28
South Korea Korea Investment Corporation 2005 $27
US - Alaska Alaska Permanent Fund 1976 $26.70
Malaysia Khazanah Nasional 1993 $23.10
Ireland National Pensions Reserve Fund 2001 $22.80
Chile Social and Economic Stabilization Fund 1985 $21.80
UAE - Abu Dhabi Mubadala Development Company 2002 $14.70
Bahrain Mumtalakat Holding Company 2006 $14
Iran Oil Stabilisation Fund 1999 $13
Canada Alberta's Heritage Fund 1976 $11.90
US - New Mexico New Mexico State Investment Office Trust 1958 $11.70
Azerbaijan State Oil Fund 1999 $10.80
Nigeria Excess Crude Account 2004 $9.40
Oman State General Reserve Fund 1980 $8.20
Botswana Pula Fund 1966 $6.90
New Zealand New Zealand Superannuation Fund 2003 $6.90
Brazil Sovereign Fund of Brazil 2009 $5.90
Total Capital of around 3.6 trillion USD $0 $500
Source: SWF Institute

9. WHAT ARE SOME KNOWN BARRIERS TO SWF
INVESTMENT IN INFRASTRUCTURE?
• Comparatively larger risk than traditional
investments
• Lack of relationship similarly long-term providers of
debt financing to match SWF equity stake
• Lack of knowledge of international infrastructure
investment markets and investment environments in
target countries
• Lack of relationship with project development
entities
• Can be perceived as not in line with mission of
preserving and multiplying wealth for future
generations

10. ACCELERATING RESILIENT
INFRASTRUCTURE INVESTMENT FOR
SUSTAINABLE ECONOMIES
• Launch a process and a working group consisting
of Sovereign Funds, Multilateral Development Banks
and other stakeholders;
• Focus on resilient and sustainable infrastructure
investment with social and economic returns
supplementing financial returns;
• Aim to mobilize an international infrastructure
project preparation fund for Rio +20 launch;
• Employ cutting edge geospatial information
systems to support project design and
implementation, and the strategic switch from
conventional to green infrastructure.

11. ARISE TOWARDS RIO
• Identify and Remove barriers to investment.
• Facilitate dialogues between Sovereign
Funds, Multilateral Development Banks, financial
institutions, companies and other stakeholders in a high-
level working group
• Define “resilient and sustainable infrastructure”.
• Develop qualitative and quantitative benchmarks to
define social, economic, and environmental
sustainability and resilience of infrastructure projects.
• Develop metrics and methodologies to assess the
suitability of potential infrastructure investments against
these benchmarks.
• Develop a package of infrastructure projects to attract
capital investment

12. ARISE LAUNCH AT RIO +20
• Announce a new and innovative public-private partnership to
invest in resilient and sustainable infrastructure, including the
Sovereign Wealth Funds (SWFs), Multilateral Development Banks
(MDBs), foundations, and the private sector, in direct
collaboration with beneficiary communities.
• Create a forum in which SWFs and MDBs will determine how to
mobilize debt and equity in a timely manner on a project-by-
project basis
• Attract innovative financing sources such as debt guarantees
and grant funding to minimize technological risk and to
overcome the initial capital cost hurdle of new technology.
• Commit funding and resources to an international project
preparation fund to determine investment feasibility, including
financial, social, economic and environmental risks and returns.
• Support policy and regulatory reforms to create an enabling
environment for resilient and sustainable infrastructure
development.

13. POTENTIAL INITIAL PARTNERS
ARISE

14. ILLUSTRATIVE PROJECT EXAMPLES
• Bus Rapid Transit Systems:
• Dedicated lanes and bus stops
with easy access
• Local, Express and Feeder Services
• Tickets integrated across whole
system and affordable for general
public
• Reliable user information system
• Clean buses with low
emissions, e.g. using CNG
• Integrated into zoning to enable
transit-oriented hubs

15. CONCENTRATED SOLAR POWER PLANT
• Around 50MW
Capacity
• Project cost of $300m
• Annual power sales of
$ 50m
• Cash-flow positive
within 24 months
• Ideally sited where
some form of
renewable energy
sales credits or
subsidies are
available