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.
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.
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 | Twitter: @blackrock_news | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock