TABLE 11.1
Marguerite II’s eligible sectors ENERGY AND RENEWABLES
TELECOMMUNICATIONS
WATER
• Quality of infrastructure varies enormously across the EU. • Significant greenfield CAPEX is required to meet EU’s transport investment requirements (TEN-T). • Major expansion, upgrading, and maintenance requirements exist in all subsectors.
• Large greenfield CAPEX is required to meet EU objectives in renewables and energy efficiency. • Energy security concerns exist because of global volatility of energy supplies driving more investment. • New areas to be connected to existing European grids require significant upgrades.
• Demand for internet is high, and broadband usage is extensive. • Economic rate of return on broadband networks is high. • The European Commission announced targets for broadband and superfast broadband in Europe. • Local authorities are supporting broadband projects through subsidies.
• Sector has strong political dimension. • Mature market exists with wide range of delivery models/organizations across Europe. • Aging infrastructure needs upgrades (to mitigate leaks, and so on). • New markets include agriculture and industry.
Investment drivers
• Infrastructure PPP pipeline is fueled by persistent budget constraints in the EU. • Infrastructure investment is used as an economic stimulus tool. • Focus is on projects that are part of the TEN-T and that have a high deliverability ratio.
• Sectors supported by EU policies for climate change, energy security, and waste management. • Significant onshore and offshore transmission networks and upgrades for balancing (increased renewables capacity). • Focus is on higher priority projects supported by European Investment Bank funding (TEN-T or Projects of Common Interest).
• Financing is not sufficient for broadband networks in white/gray areas. • In many member states the ecosystem/framework to deploy broadband is not fully organized. • Need exists for a proactive equity approach from a fund like Marguerite II with a greenfield track record.
• Driven by implementation of EU directive on wastewater treatment, especially in Central and Eastern Europe, Italy, and Spain. • Sector is very suitable for PPP/ concession.
Source: Marguerite management. Note: CAPEX = capital expenditure; EU = European Union; PPP = public-private partnership; TEN-T = Trans-European Transport Network.
Case Study—The Marguerite Fund: An Infrastructure Fund Sponsored by Development Banks
TRANSPORT
Policy drivers
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