Urban Infrastructure: Finance and Management

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.

Table of Contents:
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

About the Author :
Associate Professor Kath Wellman is Director, Centre for Developing Cities, ANZSOG Institute of Governance, University of Canberra. Her expertise is in environment, landscape architecture and planning, urban design, urban and business management. She has undertaken environment and governance consultancies for the Murray Darling Basin Authority and for the Australian Landscape Trust and was one of the principle authors of the ANU Development Policy Plan 1992. She was involved in establishing and convened the Masters of Urban Management Course (1997-2001) and established the Bachelor of Urban and Regional Planning (2009). Dr Marcus Spiller is a Director of SGS Economics and Planning Pty Ltd. His consulting experience spans land economics, regional development, housing policy, infrastructure funding and policy co-ordination systems. He has taken up secondments as lecturer in urban economics at Melbourne University, adviser to the Minister for Planning and Housing in Victoria and senior executive in the Queensland Department of Housing, Local Government and Planning. He is an Adjunct Professor of Urban Management at the University of Canberra, a member of the National Housing Supply Council and a former National President of the Planning Institute of Australia.