Salient to Investors:
Kyung-Ah Park at Goldman Sachs said:
- Water utilities, infrastructure and water rights offer stable, long-term investment.
- Water supply is very inelastic, and 1 in 8 people lack access to safe water.
- Demand for water is growing twice as fast as the global population, and much of the developed world’s water infrastructure is aging faster than it can be replaced.
- Municipalities are constrained by what they can charge so need to seek alternative financing.
Matthew Diserio at Water Asset Mgmt said:
- Managing or buying aging municipal water systems offer some of the best opportunities for private investors in water infrastructure – returns as high as 12 percent annually.
- The water business is phenomenal because water rates go only up.
- You don’t get rich off rates, you get a decent return.
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