Euromoney Global Cities Roundtable

Citi and FCC host event to present the Euromoney Global Cities Survey award to New York City

General News

On Thursday, March 22, 2012, Citi and FCC, a diversified multinational company with core business in civil infrastructure, environmental services (water/waste management) and renewable energy, hosted a press event with Euromoney to present the Euromoney Global Cities Survey award to the top ranked city, New York City. Seth Pinsky, President of New York City Economic Development Corporation, was present to accept the award on behalf of NYC. The Euromoney Global Cities Survey is a comprehensive benchmark on the competitiveness of 83 financial centers in 57 countries and their instrumental role in driving the global economy. The survey focuses on seven key categories – infrastructure, technology and innovation, environmental sustainability, healthcare, education, tax, and financial competitiveness.

After the presentation of the award by Euromoney, Seth Pinsky spoke about NYC specifically in terms of urban infrastructure, one of the key categories considered in the survey. Thomas Green, Citi’s Public Finance Sector Head, discussed “Using sub-sovereign finance tools to meet urban infrastructure project needs,” and Baldomero Falcones, CEO and Chairman of FCC, covered “Why investing in infrastructure means investing in your future.” All three then participated in a panel discussion about “Future infrastructure challenges” lead by Kathryn Tully.

The key focus of the panel was on how the Infrastructure Funding Gap could be filled by the private sector given the difficulties in the current long-term bank market and the demise of the Monoline Bond Insurers. The panelists discussed the impact that these factors and the global recession have had on both the Public-Private Partnerships (P3) and Project Finance markets. “Project finance is dead,” said Baldomero Falcones, “cities need a new framework to support short term financing for infrastructure.” The panelists spoke about the fact that there are trillions of dollars in private capital poised to invest in infrastructure, including pension fund assets and infrastructure fund assets, but new mechanisms are needed in order to get this capital deployed into infrastructure projects on a long-term basis. Thomas Green of Citi suggested “the U.S. Municipal Market as a potential model to enhance the ability of cities to raise their own revenues for projects on a sub-sovereign basis, since the national governments in most countries are too burdened by their own debt and social program payment burdens to fill the Infrastructure Funding Gap at the national level.”

The panel ended with a Q&A for the press attendees who raised probing questions about urban infrastructure and how the infrastructure funding gap can be filled to better enhance the livability in cities around the world for the future.

For more information about the Euromoney Global Cities Survey, please visit this page on the Citi for Cities website: http://www.citigroup.com/citi/citiforcities/home_articles/n_eur_survey_results.htm