The Chicago Infrastructure Trust—a new, city-created non-profit that seeks to make possible private financing of public infrastructure projects—released its first Request for Qualifications (RFQ’s) for financers.
The Trust is modeled around the concept that some worthwhile public infrastructure projects are unable to receive typical public financing. The Trust is meant to assist in finding private financing of these projects, taken on by investors that typically assume greater risk but expect a higher return. Therefore, all projects financed by the Trust must generate savings or revenue in order to repay investors.
These RFQ’s seek out financial partners for Retrofit Chicago Projects, which includes $45 million for the City Department of Fleet and Facilities Management projects; $37 million for the City’s Department of Water Management Springfield pumping station retrofit project; and $25 million for Chicago Public Schools.
These projects expect to save energy and resource costs over the coming years. Financers would be repaid with interest from these energy savings. The RFQ states that if savings isn’t obtained, the Trust, the City, or CPS will not pay any shortfall.
Bidders must respond to the RFQ by March 6th. The Trust intends to establish financial partners this summer.
The BGA has and will continue to watch over the Infrastructure Trust by attending meetings and analyzing documents.