P1:a/b P2:c/d QC:e/f T1:g fm JWBT217-Grigg January15,2010 20:24 Printer:CourierWestford vi P1:a/b P2:c/d QC:e/f T1:g fm JWBT217-Grigg January15,2010 20:24 Printer:CourierWestford Infrastructure Finance i P1:a/b P2:c/d QC:e/f T1:g fm JWBT217-Grigg January15,2010 20:24 Printer:CourierWestford Founded in 1807, John Wiley & Sons is the oldest independent publish- ing company in the United States. With offices in North America, Europe, Australia,andAsia,Wileyisgloballycommittedtodevelopingandmarket- ingprintandelectronicproductsandservicesforourcustomers’professional andpersonalknowledgeandunderstanding. TheWileyFinanceseriescontainsbookswrittenspecificallyforfinance and investment professionals as well as sophisticated individual investors and their financial advisors. Book topics range from portfolio manage- menttoe-commerce,riskmanagement,financialengineering,valuationand financialinstrumentanalysis,aswellasmuchmore. 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HC110.C3G752010 363.6068(cid:2)1–dc22 2009037063 PrintedintheUnitedStatesofAmerica 10 9 8 7 6 5 4 3 2 1 iv P1:a/b P2:c/d QC:e/f T1:g fm JWBT217-Grigg January15,2010 20:24 Printer:CourierWestford To public works and utility leaders around the world v P1:a/b P2:c/d QC:e/f T1:g fm JWBT217-Grigg January15,2010 20:24 Printer:CourierWestford vi P1:a/b P2:c/d QC:e/f T1:g fm JWBT217-Grigg December14,2009 10:21 Printer:CourierWestford Contents Preface xiii Acknowledgments xvii CHAPTER1 AnIntroductiontoInfrastructureFinance 1 WhatIsInfrastructureBusiness? 1 InfrastructureThenandNow 3 ASystemofSystems 7 SectorStructureandSize 9 EstimatingthePerCapitaCost 11 NeedforNewApproaches 11 Summary 13 PARTONE InfrastructureSectorsandInvestments CHAPTER2 ModelsoftheInfrastructureSectors 19 ClassificationSystem 19 InfrastructureandServiceOrganizations 22 BusinessModelsofInfrastructureSubsectors 24 HowInfrastructureSystemsServetheBuiltEnvironment 26 MatrixofOwnersandUsersofInfrastructureSystems 27 InfrastructureandServices:StructuresandEquipment 28 InfrastructureSupportSector 30 Summary 33 CHAPTER3 InfrastructureandtheConstructedEnvironment 37 LandUsesintheBuiltEnvironment 37 GrowthandChangeinUrbanAreas 39 vii P1:a/b P2:c/d QC:e/f T1:g fm JWBT217-Grigg December14,2009 10:21 Printer:CourierWestford viii CONTENTS FinancialAssetsintheBuiltEnvironment 45 HousingFinanceasanEngineofDevelopment 47 CommercialandCentralCityDevelopment 55 ImpactFeesandtheGrowth-Pays-Its-Own-Way Philosophy 58 FutureCitiesandInfrastructure 60 SummaryofIssuesandOutlook 62 CHAPTER4 TransportationSector 65 SectorStructureandSize 65 RoadandHighwaySystems 69 MassTransitSystems 79 AirTravelandAirports 84 IntercityRailSystems 87 IntercityBusTransportation 90 Water-basedTransportation 91 Pipelines 92 SectorIssuesandOutlook 92 CHAPTER5 TelecommunicationsSector 97 WhyTelecommunicationsIsanInfrastructureSector 97 ThenandNow 99 SectorStructureandSize 100 Internet 102 TelecommunicationCompanies 102 SectorIssuesandOutlook 104 CHAPTER6 EnergySector 109 SectorStructureandSize 109 EnergyTrends 114 ElectricPowerIndustry 116 NaturalGasIndustry 119 PetroleumIndustry 121 CoalIndustry 122 NuclearPowerIndustry 124 Renewables 126 EnergyStorage 127 HydrogenEnergy 129 SectorIssuesandOutlook 129