Bankability Resilience Tool (BART)

Link to external tool

Available on request at Arcadis NL (contact eric.schellekens@arcadis.com or Jolijn.posma@arcadis.com)

Use in decision framework

Select adaptation approaches
Generate options for adaptation approaches
 Assess adaptation options
Select optimal set of options
Financial consequences

Description

Earlier and recent collaboration and consults with cities shows that implementation of measures appears as a next hurdle not easy to take. Implementation appears to be a barrier even when cities are aware of their vulnerability and know what assets of areas to focus upon. A reason mentioned by most of these cities, ‘we know what to do but don’t know how to finance’. The Bankability Resiliency Tool (BART) is developed to overcome this barrier. The BART is a CBA/MCA-based tool to support optioneering (see optioneering methodology) by identifying financial gaps of highly ambitious and accelerated investments and supporting to fill these gaps. With this tool, the feasibility and bankability of projects or breakthrough projects or developments are increased.
The BART provides insights in (amongst others):

  • (financial engineered) Additional value of resiliency measures;
  • Opportunities to capture value of related developments;
  • Possible financial arrangements.

Furthermore, the BART includes information about added value per stakeholders. This can help cities to create the first step to stakeholder commitment and coalition forming.

BART step-by-step approach

Preparatory activities

1.    Select relevant stakeholders
2.    Answer the general questions regarding facts and figures of the focus area. If you would like to add facts and figures; contact the developer/owner.
3.    Look at the overview of adaptation measures and standardized key figures of investment costs per adaptation measure. If changes are needed contact the developer/owner.

Optioneering session

4.    Take the following steps per preliminary development opportunity that resulted from the design break-out of the of the optioneering session
5.    Select the adaptation measures
6.    Fill in facts and figures per measure (e.g. amount of m2, water storage capacity in mm etc.)
7.    Combine stakeholders and adaptation measures (who benefits from what measure?)
8.    Fill in other developments in the area or close-by areas (including budget/value and the percentage that could potentially be captured by the preliminary development opportunity
9.    Fill in possibilities for financial arrangements (e.g. green bonds)
10.    Fill in the results from the MCA session in the qualitative sheet
11.    Collect quantitative and qualitative results
12.    Repeat the process until the financial gap has been filled or decreased to an acceptable level. Keep in mind the financial gap might be filled in both a financial and a non-monetized added value (qualitative results from e.g. MCA and SCBA).

Input

For the use of the BART tool, the following input is required:

  • Measures to be implemented, including size of each measure (in terms of e.g. m2);
  • Facts and figures of the city (district); e.g. total area, % build, number of residents, demographics, real estate value etc.;
  • An overview of stakeholders involved in the project (including stakeholders that benefit from the project);
  • (Estimates of) Total investment costs and maintenance & operation costs of the project;
  • Overview of developments in the area including total budget/value;
  • Lifetime of the project;

User friendliness

Some economic expertise is needed to be able to use and especially interpret the results of the BART. There are guidelines in using BART, however consultation with economists is needed.

Output

An analysis using the BART results in the following output:

  • Bankable opportunities: Promising bankable (financeable) opportunities to increase city resiliency.
  • Added value of resiliency measures: Focus on blue-green resilient infrastructure, and showing that these measures create added value
  • Benefits per stakeholder: Shows the added value for each relevant stakeholder.
  • First step towards coalition forming: During the optioneering workshops, the insights of the BART on added value per relevant stakeholder can be used as a starting point for discussion on financing coalitions and financial arrangements
  • Financial feasibility: The BART provides first insights into the financial feasibility of resilience measures

Furthermore, the BART results include graphs showing investments costs distributed over measures, monetized added value of measures, non-monetized added value of measures. See some indicative impressions below:

bart-example

Example of BART investment cost distribution over measures output

bart-example-2

Example of BART benefits of measures output

bart-example-3

Example of BART distribution of costs over stakeholder type output

bart-example-5

Example of BART MCA output

Developer/Owner

Arcadis NL is the developer and manager of the tool. The BART is currently active in further development, and applied in city developments globally.

Conditions for use

To be determined after contacting the owner.

Experiences

The BART has been used in optioneering sessions in Greater Manchester, Gent, and Nijmegen.