First public-private-partnership of its kind will provide cost savings
for Michigan tax payers
NEW YORK--(BUSINESS WIRE)--
BlackRock Infrastructure, Michigan Department of Transportation and
Freeway Lighting Partners have formed an innovative
public-private-partnership to finance an upgrade and provide ongoing
service to Michigan’s freeway lighting system. Funds managed by
BlackRock Infrastructure will finance the replacement and upgrade of
approximately 15,000 lamps of freeway and tunnel lighting systems in the
Detroit Metro Region with energy-efficient LED lights.
The first P3 dedicated to freeway lighting in the U.S., the agreement is
expected to deliver Michigan tax payers with an annual cost savings
versus the cost to MDOT of upgrading and maintaining the lighting system
itself. Approximately 30% of the 15,000 lights are currently not
operational owing to fiscal constraints and maintenance challenges.
“The growth of P3 projects in the US is critical to help improve the
significant underinvestment in America’s infrastructure. BlackRock is
well positioned to support these states and municipalities and we look
forward to exploring future opportunities across the country,” said Erik
Savi, Global Head of Infrastructure Debt at BlackRock.
The financing is for a 15-year term, including a 2-year construction
period. The debt will be serviced through quarterly payments based on
availability and energy savings payments.
About BlackRock Infrastructure
BlackRock, the largest investment manager in the world with $4.506
trillion of AUM, sits at the intersection of global capital and
infrastructure investing opportunities. With deep industry expertise,
demonstrated access to proprietary deal flow and a purely fiduciary
mindset, our experienced investment professionals leverage BlackRock’s
unparalleled risk management capabilities and global reach to deliver
compelling investment opportunities to meet our clients’ needs.
BlackRock provides investors with infrastructure equity and debt
investments via Funds, Co-Investments, Managed Accounts and Multi
Manager strategies and currently has $7.5 billion in invested and
committed assets. Our team of infrastructure investment professionals is
based in New York, London, Dublin, Mexico, Paris, Seattle, Stockholm and
Zurich.
About BlackRock
BlackRock is a global leader in investment management, risk management
and advisory services for institutional and retail clients. At September
30, 2015, BlackRock’s AUM was $4.506 trillion. BlackRock helps clients
around the world meet their goals and overcome challenges with a range
of products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. As of September 30, 2015, the firm had approximately 12,900
employees in more than 30 countries and a major presence in key global
markets, including North and South America, Europe, Asia, Australia and
the Middle East and Africa. For additional information, please visit the
Company’s website at www.blackrock.com
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View source version on businesswire.com: http://www.businesswire.com/news/home/20151020006040/en/
Media:
BlackRock
Tara McDonnell, 212-810-5337
Tara.McDonnell@blackrock.com
Source: BlackRock