Page 37 - A U4SSC deliverable - Guidelines on tools and mechanisms to finance Smart Sustainable Cities projects

Endnotes

1 UNECE, Committee on Innovation, Competitiveness and Public-Private Partnerships (2019). Guiding
Principles on People-first Public-Private Partnerships in support of the United Nations Sustainable
Development Goals. ECE/CECI/2019/5. Available at: http:// www .unece .org/ fileadmin/ DAM/ ceci/
documents/ 2019/ CICPPP/ Official _documents/ ECE _CECI _2019 _05 -en .pdf
2 Impact investment - directing capital to enterprises that generate social or environmental benefits — in
projects from affordable housing to sustainable timberland and eye-care clinics — that traditional business
models often sidestep (McKinsey & Company 2018).

3 UNECE. International PPP Centre of Excellence. Available at: https:// www .uneceppp -icoe .org/ people
-first -ppps/

4 UNECE, Committee on Innovation, Competitiveness and Public-Private Partnerships (2019). Guiding
Principles on People-first Public-Private Partnerships in support of the United Nations Sustainable
Development Goals. ECE/CECI/2019/5. Available at: http:// www .unece .org/ fileadmin/ DAM/ ceci/
documents/ 2019/ CICPPP/ Official _documents/ ECE _CECI _2019 _05 -en .pdf
5 Industrial areas which surround the cities and provide profits from their economic activities to the cities.

6 An SPV is a separate legal entity created by an organization. It is a distinct company, with its own assets and
liabilities, and its own legal status. It is usually created for a specific objective, often to isolate financial risk.
As it is a separate legal entity, if the parent company goes bankrupt, the SPV can uphold its obligations
(Corporate Finance Institute).
7 Long-term investment (finance) can be defined as any financial instrument with maturity exceeding one
year (such as bank loans, bonds, leasing and other forms of debt finance), and public and private equity
instruments. Maturity refers to the length of time between the origination of a financial claim (loan, bond,
or other financial instrument) and the final payment date, at which point the remaining principal and
interest are due to be paid (World Bank 2020).
8 In recent years, there has been increasing business interest in adopting the triple bottom line - ESG
impacts - approach to investment, mainly from institutional investors. Sustainable investments also
procure the basis for financial gains in other projects, as improvements in society and the environment
trigger a more resourceful economy where investors can also commit their capital with financial objectives
in sight.
9 Deloitte (2019). The Challenge of Paying for Smart Cities Projects. Available at: https:// www2 .deloitte
.com/ au/ en/ pages/ about -deloitte/ articles/ challenge -paying -smart -cities -projects .html

10 Securitizing involves pooling multiple types of contractual debt and selling their related cash flows to
third-party investors as securities.
11 S&P is a business intelligence company which specializes in providing credit ratings for bonds, countries,
and other investments. It provides customized analysis and establishes market indexes. The most well-
known index offered by S&P Global is the S&P 500 (Amadeo 2020).

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