Addressing the Water Infrastructure Funding Gap


Source: Water.ca

Ottawa, ON – Water.ca is pleased to present another installment of the Water Investor, a series featuring live audio updates on the water industry, hosted by Steve Hoffmann, President of Water Tech Capital and founder of the Palisades Water Index (ZWI).

In today’s segment, Mr. Hoffmann takes a look at some of the macro factors underlying trends in the water industry. Increasing infrastructure demands combined with dwindling EPA grants and State Revolving Funds are creating a widening gap in spending relative to constructing, improving and maintaining water and wastewater systems. This drying capital pool is feeding a growing concern that no mechanism exist to provide the resources needed to address these water issues.

Aqua America Chairman, Nicholas DeBenedictis, recently suggested that utility regulators could address the challenge by providing incentives enabling water utilities to attract investors and provide capital for system improvements.

Major investment banks such as Goldman Sachs, JP Morgan and the Carlyle Group are in the process of creating enormous infrastructure funds. Mr. Hoffmann invites investors to monitor which companies will benefit from these large pools of capital. Some of the large companies to monitor include Suez (SWI), Siemens (SI) and perhaps Dow Chemichals (DOW), but also smaller players such as ITT Industries (ITT).

Stephen J. Hoffmann has substantial consulting and operations experience in the areas of water and wastewater treatment, technology commercialization, strategic marketing, water rate design, regulatory compliance and water policy.

Mr. Hoffmann is also a principal architect of the Palisades Water Index (ZWI), a modified equal-dollar weighted index comprised of U.S. exchange-traded companies engaged in the global water industry. The Index includes companies that are well-positioned to benefit from the inevitable increase in the value of water as the demands of the global population adjust to the inter-relationships between human health, economic development, and ecological sustainability.

Water.ca is an online information service that chronicles the battle for Canada’s fresh water resources. The site also features an interactive map pinpointing water advisories across the country, and a Red Button Service to alert and help communities faced with a water crisis.

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