Financing Mechanisms for Addressing Remediation of Site Contamination

Industrial and commercial facilities provide great economic benefit to communities throughout the world. Unfortunately, many industries use or have used practices and materials which have proven toxic to the environment and to those who live and work near contaminated sites. The definition and degree of contamination varies at national and regional levels of government, but leaders throughout the world now recognize the hazard that contaminated industrial and service sites present to the wellbeing of their communities and seek innovative ways to finance the remediation of these challenging sites. Industrial contamination can have a severe, direct impact on adjacent communities. The cleanup and redevelopment of a so-called brownfield can improve a community s economy, provide an opportunity for habitat restoration, and create public space. Cleanup and redevelopment of brownfields can be an effective economic development strategy, with benefits seen in two timeframes. First, there is an immediate and one-time capital expenditure for cleanup activities, infrastructure, and construction. The initial investment generates tax revenues, temporary family-wage jobs, and indirect economic benefits within the community. Secondly, there is a long-term economic impact from remediation projects in the form of higher property values, long-term tax revenues, and the attraction of external capital to the community by tenants of the revitalized property. The economic benefit of contaminated site redevelopment is perhaps most clearly illustrated by permanent job creation from the restored properties. The deleterious effects of industrial contamination across all facets of a community typically provide a strong incentive for leaders to seek financing mechanisms that make site remediation possible.

Bibliographic Details

Main Author:	World Bank Group
Language:	English en_US
Published:	World Bank, Washington, DC 2014-10
Subjects:	ACCESS TO CAPITAL, ACCESS TO FINANCING, ACCESS TO PRIVATE MONEY, ACCOUNTING, ADMINISTRATIVE COSTS, ADMINISTRATIVE DUTIES, AMORTIZATION, BANKS, BARRIER TO FINANCING, BOND FINANCING, BOND HOLDER, BOND ISSUANCE, BOND ISSUE, BOND ISSUING, BOND MARKET, BOND MARKETS, BORROWER, BORROWING, BUDGET CONSTRAINTS, BUSINESS OWNERS, CAPITAL MARKETS, CAPITALIZATION, CASH FLOW, CHECKS, COLLATERAL, COLLATERAL ENHANCEMENT, COLLATERAL RISK, COLLATERAL SUPPORT, COLLATERALIZATION, COMMERCIAL PROPERTY, COMMERCIAL TRANSACTIONS, COMMUNITY DEVELOPMENT, COMMUNITY REVITALIZATION, CONCESSION, CORPORATE BOND, CORPORATE BOND MARKET, CORPORATE BONDS, COST SHARING, CREDIT ANALYSES, CREDIT ENHANCEMENT, CREDIT ENHANCEMENTS, CREDIT HISTORY, CREDIT QUALITY, CREDIT RATING, CREDIT REPORTS, CREDIT RISKS, CREDIT STRENGTH, CREDIT UNIONS, CREDITWORTHINESS, CS, CURRENCY, DEBT, DEBT FINANCE, DEBT FINANCING, DEBT FORGIVENESS, DEBT OBLIGATION, DEDICATED REVENUE, DEFAULT RATE, DEFAULT RISK, DEFAULTS, DEPENDENT, DEPOSIT, DEVELOPING COUNTRIES, DEVELOPMENT FINANCE, DIRECT INVESTMENT, DISBURSEMENT, DISBURSEMENTS, EARNINGS, ECONOMIC DEVELOPMENT, ECONOMIC SYSTEM, ECONOMIC SYSTEMS, ELIGIBLE APPLICANTS, ELIGIBLE BORROWERS, ENVIRONMENTAL PROTECTION, ENVIRONMENTAL QUALITY, EQUIPMENT, EQUITY CONTRIBUTION, EVENT OF DEFAULTS, EXCHANGE RATE, EXPENDITURE, EXTERNAL ASSETS, EXTERNAL CAPITAL, FEDERAL INCOME TAXES, FEDERAL TAX, FINANCES, FINANCIAL ANALYSIS, FINANCIAL BURDEN, FINANCIAL INSTITUTIONS, FINANCIAL POSITION, FINANCINGS, FORMS OF DEBT, FUND MANAGEMENT, FUTURE LOAN, GENERAL OBLIGATION, GENERAL OBLIGATION BONDS, GOVERNMENT FUNDING, GOVERNMENT INTERVENTION, GOVERNMENT REGULATIONS, GRANT FUNDING, GUARANTOR, INCOME FROM BONDS, INFRASTRUCTURE FINANCING, INITIAL FUNDING, INITIAL INVESTMENT, INSTITUTIONAL INVESTORS, INSTITUTIONAL LENDERS, INSURANCE, INTEREST INCOME, INTEREST RATE, INTEREST RATES, INTERNATIONAL BANK, INVESTING, INVESTMENT BANK, ISSUANCE, ISSUANCES, JOB CREATION, JURISDICTION, JURISDICTIONS, LAND BANK, LAND OWNERSHIP, LEGAL PROTECTION, LEGAL PROTECTIONS, LEGAL REQUIREMENTS, LENDER, LENDERS, LENDING REGULATIONS, LETTER OF CREDIT, LEVEL OF RISK, LEVERAGE, LIQUIDATION, LOAN, LOAN AMOUNTS, LOAN FUND, LOAN FUNDS, LOAN GUARANTEE, LOAN GUARANTEE PROGRAMS, LOAN LOSS, LOAN OFFICERS, LOAN PAYMENTS, LOAN PROGRAM, LOAN PROGRAMS, LOAN SIZE, LOAN TERM, LOAN TERMS, LOCAL BANKS, LOCAL BUSINESS, LOCAL BUSINESSES, LOCAL ECONOMY, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, LONG-TERM CAPITAL, LOW INTEREST RATE, LOW INTEREST RATES, MARKET CONDITIONS, MARKET INTEREST RATES, MATURE MARKET, MINORITY BUSINESS, MINORITY BUSINESS DEVELOPMENT, MUNICIPAL BOND, MUNICIPAL BOND MARKET, MUNICIPAL BONDS, NEGATIVE COVENANTS, NEW MARKET, NEW MARKETS, OUTSTANDING LOAN, PENSION, PENSION FUNDS, PERMANENT JOB, PERMANENT JOBS, PERPETUITY, POOR CREDIT, PORTFOLIO, PRINCIPAL PAYMENTS, PRIVATE BORROWERS, PRIVATE FINANCIAL INSTITUTION, PRIVATE FINANCING, PRIVATE FUNDS, PRIVATE INFRASTRUCTURE, PRIVATE INVESTMENT, PRIVATE LENDER, PRIVATE LENDERS, PRIVATE LOAN, PROPERTY OWNER, PROPERTY OWNERS, PROPERTY TAX, PUBLIC DEBT, PUBLIC FINANCE, PUBLIC FINANCING, PUBLIC FUNDS, PUBLIC INVESTMENT, PUBLIC-PRIVATE PARTNERSHIP, PUBLIC-PRIVATE PARTNERSHIPS, REAL ESTATE, REAL ESTATE LOAN, REAL PROPERTY, RECEIPTS, REGULATORY POLICIES, REGULATORY SYSTEM, REINVESTMENT, REPAYMENT, REPAYMENT HISTORY, REPAYMENTS, RESERVE, RESERVE FUNDS, RESERVE REQUIREMENTS, RESERVES, RESTORATION, RETURN, RETURN ON INVESTMENT, REVENUE BONDS, REVOLVING LOAN, REVOLVING LOANS, SAVINGS, SECURITIES, SEED FUNDING, SMALL BUSINESSES, SOLVENTS, STOCKS, TAX CODE, TAX CREDIT, TAX CREDITS, TAX EXEMPTION, TAX REVENUES, TAX-EXEMPT, TAX-EXEMPT BONDS, TAX-EXEMPT FINANCING, TAX-EXEMPT STATUS, TECHNICAL ASSISTANCE, TOTAL DEBT, UNDERWRITERS, VALUATION, VARIABLE RATE, WORKING CAPITAL,
Online Access:	http://documents.worldbank.org/curated/en/ https://hdl.handle.net/10986/21098
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