How Sao Paolo uses Value Capture to Raise Billions for Infrastructure

by Jörgen Eriksson on July 29, 2015

GautrainThe infrastructure in many cities lags behind the population’s needs. This is a major challenge for city governments in both emerging, high-growth places and industrialised nations with low growth and less public funding to replace aging public spaces and utilities.

The on-going rebalancing of global economic power has led to unprecedented investment plans in infrastructure in the emerging markets. For example, the Asia Pacific market, driven by China’s growth, is expected to represent nearly 60% of global infrastructure spending by 2025. In contrast, Western Europe’s share is expected to shrink to less than 10% from twice as much just a few years ago, according to PwC and Oxford Economics’ Capital Project and Infrastructure spending outlook to 2025 report. But infrastructure is expensive and especially in emerging markets, the cost of capital can be prohibitive for large scale public investments.

The trick is to work with financial innovation and value capture. Today Marco Kamiya at UN Habitat pointed out an excellent brief article on CitiScope Global News, about how Sao Paolo in Brazil uses value capture to raise funding for infrastructure projects. Click on this link to read the article.

Screenshot 2015-07-29 21.09.25

About Jörgen Eriksson :

Jörgen Eriksson is the founder of Bearing and is the Chairman of the firm since it was created. He has successfully expanded Bearing into covering projects on four continents. He is also Adjunct Professor of Innovation Management at the International University of Monaco and at Universitat Politècnica de Catalunya in Barcelona and he is an active member of the Founders Alliance organisation.

Working with consulting engagements across Bearings practices, he has over the past fifteen years participated in and supervised a large number of client projects, from innovation system development and place development and branding, to merger and acquisition assignments and leading edge research and business development activities for key clients.

His new book, Branding for Hooligans, will be published in 2015. It is about how innovation and branding are key survival factors in our modern times of hyper competitive markets.

Prior to Bearing, he was Director of Europe, Middle East, and Africa for Trema Treasury Management, a technology and consulting services provider, supplying financial software solutions for the global financial industry, Clients included The European Central Bank, Citibank, SEB, South African reserve Bank, Deutsche Bank, Abu Dhabi Investment Authority (ADIA), as well as many other large financial institutions and Fortune 500 companies.

Early in his career Eriksson was educated at the Stockholm School of Economics, where he studied economics, financial economics and philosophy. He then worked in Scandinavian investment banks and also for the Swedish Institute of National Defense Research.

You can contact Jörgen on e-mail jorgen.eriksson@bearing-consulting.com, connect on LinkedIn on http://fr.linkedin.com/pub/jörgen-eriksson/0/38/8a0/ and follow him on twitter on joreri508.

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