Request for Statement of Interest

This Request for Statement of Interest (RSI) is designed to help a project team called P3GreatLakes select two municipalities (if funding allows) from the Great Lakes basin states (Minnesota, Wisconsin, Illinois, Indiana, Michigan, Ohio, Pennsylvania, and New York) to pilot innovative delivery and financing approaches for green stormwater infrastructure.

P3GreatLakes is supported through grant funding from the Great Lakes Protection Fund and is led by Environmental Consulting & Technology, Inc. (ECT). Team partners include Corvias that is the private partner in nation’s first stormwater community-based public-private partnership (CBP3), and Quantified Ventures that has executed the nation’s first four stormwater Environmental Impact Bonds. P3GreatLakes is already engaged across the Great Lakes basin, and a description of our recent work can be found at http://www.p3greatlakes.org/reports-key-findings/.

P3GreatLakes seeks to drastically reduce overall delivery costs to large-scale stormwater management programs while, when needed, also providing new capital for innovative green infrastructure projects, both accomplished while lowering cost risk to the public partner.


WHAT IS A COMMUNITY-BASED PUBLIC PRIVATE PARTNERSHIP?

A CBP3 is an agreement between public and private sector entities to design, build, finance, operate, and maintain (DBFOM) public infrastructure in a manner that is more efficient than what they could be accomplished on their own. Structured well, municipalities entering a CBP3 can expect: efficient shovel ready developed projects, cost savings, access to best fit private and/or public capital, no credit and/or balance sheet impact, debt minimization, and relief from cumbersome processes. Because risks and costs are shared, the partnership can benefit by innovation. This innovation can deliver long-term and efficient solutions.


WHAT IS AN ENVIRONMENTAL IMPACT BOND?

An Environmental Impact Bond (EIB) is an innovative financing tool that uses an outcomes-based financing approach to provide up-front capital from private investors for environmental projects, either to pilot a new approach whose performance is viewed as uncertain or to scale up a solution that has been tested on a small scale. Outcomes-based financing enables a municipality to pay for successful outcomes of a social or environmental initiative, rather than solely on the delivery of those initiatives. This can lower the cost of a project to the municipality if the project fails to deliver the promised outcomes. This approach also allows municipalities to broaden their investor base by  attracting impact investors who seek to earn not just financial but also social and environmental returns on their investments.


HOW WILL THIS BENEFIT MY CITY?

In the case of EIBs: by shifting downside risk from the public sector to private investors, EIBs enable cities to pilot and scale innovative green stormwater infrastructure solutions while protecting their capital budget, taxpayers, and rate base in the case of non-performance. At the same time, through the monitoring and evaluation process used to determine performance outcomes, cities gain valuable data on the cost-effectiveness and replicability of these innovative programs.

In the case of CBP3s: aggregating project can result in significantly lower costs. In addition, beyond delivering work on time and under budget, the payment to a CBP3 partnership typically also requires fulfillment of socio-economic goals, like community outreach, workforce development, and hiring disadvantaged subcontractors.

Introduction to community-based public-private partnerships

Introduction to environmental impact bonds


Through the support of the Great Lakes Protection Fund, this opportunity will enable communities to employ the services of P3GreatLakes team at no additional cost (although a small match is encouraged), providing the following benefits:

DEPLOYMENT OF INNOVATIVE GREEN STORMWATER INFRASTRUCTURE SOLUTIONS:

The CBP3/EIB model allows cities to use green stormwater infrastructure or other innovative solutions to help meet stormwater compliance needs or help build the resilience of vulnerable communities etc.

STAKEHOLDER ENGAGEMENT SUPPORT:

Our suggested options (CBP3/EIB) require stakeholder engagement across entities and present opportunities to engage new partners. We will identify, coordinate, and align relevant stakeholders during the structuring process.

BROADER ACCESS TO CAPITAL:

Cities can attract private investors, including “place-based” investors empowered to finance the development of their own communities.

SHOULD YOU RESPOND TO THIS REQUEST FOR STATEMENT OF INTEREST:

Please follow the attached flow chart to assess your needs.

TRANSACTION DESIGN

The team will design the transaction template, including financial structure, outcome measures, outcome payment triggers, and co-benefits.

TAILORED STRUCTURING:

Coupon rates, number and coverage of performance cases, principal exposure, and payment guarantees can all be tailored to suit the context and needs of a particular city.

WHAT ARE WE LOOKING FOR?

We are looking to work with city agencies, utilities, water authorities, or sewer authorities located in Great Lakes States (Minnesota, Wisconsin, Indiana, Illinois, Ohio, Michigan, Pennsylvania, and New York) who have green stormwater infrastructure projects that are far enough along in the planning process to need delivery and financing support.

Please sign up below and review our Request for Statement of Interest materials above to learn more, express interest, or get in touch.

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