Global Citizenship Report 2017

Infrastructure As much as $59 trillion in infrastructure investment will be needed in the next 15 years around the world to keep up with demand and replace aging systems . 3 This need for investment is not being met — the amount spent on infrastructure as a percentage of GDP has continued to decline in recent years. Ineffective, outdated or even completely lacking infrastructure negatively impacts the lives of people, with low-income commu- nities and developing economies particularly hard hit. Over 1.5 billion people around the world live without electricity, nearly 1 billion lack clean water and 2.5 billion have no access to basic sanitation . 4 This deficiency impacts those living in devel- oped countries too — according to the American Society of Civil Engineers, degraded infrastructure in the U.S. decreases GDP by nearly $4 trillion and costs American families an average of $3,400 in disposable income annually . 5 Private- and public-sector stakeholders need to work together to find ways to overcome investment barriers. In 2016, we published a Citi GPS report entitled Infrastructure for Growth: The Dawn of a New Multi-Trillion Dollar Asset Class. The report explores the potential for a global infrastructure push and the vast opportunity for both the public and private sectors. Citi finances billions in infrastructure projects around the world. In 2017, our activities included providing more than $7 billion in green building and sustainable transportation projects that are helping cities meet the needs of rapid urbanization and work toward SDG 9 , which commits to build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation , as well as SDG 11 , which aims to make cities and human settlements inclu- sive, safe, resilient and sustainable . Our work contributes to target 9.1 , which includes developing quality, reliable, sustainable and resilient infrastructure , while our work on affordable housing also supports target 11.2 , which includes an aim of providing access to safe, affordable, accessible and sustainable transport systems for all . SDG SPOTLIGHT: GOAL 9 Industry, Innovation and Infrastructure SDG SPOTLIGHT: GOAL 11 Sustainable Cities and Communities MEXICO CITY AIRPORT Mexico City’s Benito Juárez International Airport, serving a city of 20 million, is Latin America’s busiest airport in terms of passenger and aircraft traffic. The airport needed invest- ment for expansions and improvements to meet growing demand. With public budgets strained, the project required a smart debt-financing plan to avoid problems down the road. Citi worked with airport and government officials to craft a customized and sustainable financing plan that would reduce the need for federal budget contributions, or new debt and new taxes. We acted as the global coordinator, collateral agent and intercreditor agent for the airport’s $3 billion construction loan in 2015, as well as its inaugural $2 billion bond issue in 2016 and a follow-on bond issuance in 2017. This bond was the largest-ever Latin American airport bond and won six industry awards. The high visibility of the Mexico City airport project and its innovative finance structure are sure to make it a future model for other countries. The project will also improve quality of life and the economy for local residents. After expansions and upgrades which are expected to be complete in 2020, the new airport will have six times more capacity and will create an estimated 600,000 indirect jobs. 3 Citi Global Perspectives and Solutions, Infrastructure for Growth: The Dawn of a New Multi-Trillion Dollar Asset Class (October 2016), https://www.citivelocity.com/citigps/ReportSeries.action?recordId=55. 4 Ibid. 5 “Infrastructure Report Card: Economic Impact,” American Society of Civil Engineers (website), accessed January 2018, https://www.infrastructurereportcard.org/the-impact/economic-impact /. Citi 2017 Global Citizenship Report 95 CONTENTS    INTRODUCTION    HOW WE DO BUSINESS    SOLUTIONS FOR IMPACT     APPENDICES Environmental Finance    Inclusive and Resilient Communities