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Urban Infrastructure: Finance and Management

Urban Infrastructure: Finance and Management

K. Wellman, Marcus Spiller

ISBN: 978-1-118-40163-7 August 2012 Wiley-Blackwell 328 Pages

Description

The magnitude of investment, the long time-frames involved and the influence of pre-existing infrastructure on urban infrastructure provision make a co-ordinated approach to forward-planning, policy development and implementation essential.

There are major challenges in making decisions on urban infrastructure and getting management structures and processes in place. Getting it right generates long-term dividends; getting it wrong involves major costs, often borne by taxpayers.

Urban Infrastructure: finance and management is posited on a strong belief that the physical structure of cities and the efficiency of infrastructure services delivered are driven by efficiencies within individual infrastructure sectors, lessons learnt across these sectors and the ability to co-ordinate and integrate sectors to generate economies of scale.  This necessitates an interdisciplinary approach, integrating knowledge from finance, governance, planning and management as well as the characteristics of the individual urban infrastructure sectors involved. Here it is not only about getting the initial decisions and policy settings right, but also ensuring effective implementation. A major theme running through the book is the nature of institutions and the governance structures responsible for delivery and management of urban infrastructure and the decision making processes involved.

The editors have taken a deliberately pragmatic approach to the finance and management of urban infrastructure; chapters are cross-sectorial and present both theory and practice. This book is for students and practitioners in policy, planning, urban management, infrastructure finance and management.

About the Contributors vii

Preface xi

Acknowledgments xv

Abbreviations xvii

Chapter 1 Introduction
Kath Wellman and Marcus Spiller

Introduction 1

Global Challenges of Urban Growth, Climate Change, and Finance 3

Technological Change 6

Microeconomic Reform and Productivity 6

Australia as Case Study 9

References 11

Chapter 2 Urban Management Principles and Instruments
Lyndsay Robert Neilson

Introduction 13

Urban Policy 19

Policy Implementation 27

Conclusions 50

References 51

Chapter 3 Urban Infrastructure: Productivity, Project Evaluation, and Finance
Kath Wellman and Frederik Pretorius

Introduction 53

Which Investments Should Be Undertaken? 55

Infrastructure: On Efficiency, Effectiveness and Equity, Markets, and Further Economic Concerns 57

Criteria for Choice in Action: Nation Building for the Future 61

Assessing the Benefits and Costs: Project Evaluation 63

Financial Evaluation 63

Cost-Benefit Analysis 64

Limitations of Cost-Benefit Analysis 65

A Case in Point: Questions about Project Evaluation in Practice 70

Further Methodological Challenges: Multicriteria Analysis 71

How Should the Investment Be Financed? 73

Forms of Financing 75

Capital Markets and Infrastructure Financing in Australia since the 1990s 78

Conclusions 80

References 81

Chapter 4 Private–Public Partnerships: Transaction Analysis and the Case of Urban Motorways
Frederik Pretorius, Sophie Sturup, and Andrew McDougall

Introduction 83

A Private–Public Sector Participation Continuum 85

A General Framework for Analyzing Private–Public Partnerships in Infrastructure 86

The Melbourne CityLink: A First-Generation Modern Era Build-Own-Operate-Transfer PPP 97

Conclusions 118

References 119

Chapter 5 Land Management and Planning Legislation
Marcus Spiller

Introduction 121

The Land Development Process 122

Planning Systems and Land Use Regulation 128

Overview of Good Practice Principles 145

References 148

Chapter 6 Financing and Managing Urban Water
Kath Wellman

Introduction 149

The Urban Hydrological Cycle 151

Climate Change and Its Impact on Urban Water Management 153

Water Security: Balancing Demand and Supply 154

The Urban Water Industry 163

Financing Urban Water Utilities 170

The Financial Structure of Water Utilities 172

Conclusions 176

References 177

Chapter 7 Financing and Managing Urban Energy Systems
John Daley

Introduction 181

Outline of the Chapter 182

Energy Systems, Energy Policy, and Governance 182

Energy Markets, Resources, and Supply Systems 193

Australia: Primary Energy Resources and Supply 196

Australia: Secondary Energy Supply and Retailing 199

Future Energy Systems 216

Conclusions 220

References 221

Relevant Websites 223

Chapter 8 Financing and Managing Urban Transport

Cameron Gordon

Introduction 225

Urban Transport in Theory 226

Australian Transport Shed 228

Australian Transport Infrastructure 229

Australian Transport Modes 231

Australian Transport Policy Structures and Mechanisms 235

Australian Urban Transport in Detail 242

Conclusions 255

References 256

Chapter 9 Principles and Systems for Coordination of Infrastructure Investment across Portfolios
Marcus Spiller, Praveen Thakur, and Kath Wellman

Introduction 259

City Shaping and Follower Infrastructure 260

""Predict and Provide"" versus ""Creating the Future"" 261

Identifying Infrastructure Projects with ""City Shaping"" Power 264

Designing Coordination Systems 270

Coordinating City Shaping Infrastructure 271

Coordinating Follower Infrastructure 275

Challenges 276

Planning and Governance at a Metropolitan Scale 278

Mission 279

Urban Metropolitan Governance 280

Role of the Australian Government 283

Conclusions 285

References 285

Glossary 287

Index 295