The Business of Coastal Management Capturing the benefits from mitigating risk to deliver coastal resilience infrastructure projects

Paul Mackie Coastal Strategic Development Manager, Coastal Partnership East: North Norfolk, Suffolk Coastal, Waveney District & Great Yarmouth Borough Councils working in partnership

The Partnership

Funding model

Thinking wider Capturing the full cost of disasters enables us to present a stronger business case to mitigate these risks

Risk, Resilience and Response

in a Changing Climate

Convened by Environment Agency

Organised by Trio Telford International Centre, February 23-25 2016

Financing Resilience, Paul Mackie, Suffolk Coastal & Waveney DCs

Our projects are catalysts for growth.

They are an ‘enabler’, unlocking investment by

minimising uncertainty.

So we sell the benefits from mitigating risk, rather than the cost of not mitigating them.

Lowestoft

Image data ©2016 Google Earth, ©2016 Getmapping plc

December 2013 tidal surge – catalyst for change

• Largest in Lowestoft since 1953;

• Over 160 properties affected;

• Businesses brought to standstill;

• Highlighted the inadequacy of

Lowestoft’s defences and the impact on

existing and potential growth (from all

sources of flooding).

Tidal flood risk assessment

Image data ©2016 Google Earth, ©2016 Getmapping plc

The project will:

• Reduce the risk of flooding from all sources;

• Facilitate economic growth;

• Stimulate development and creation of jobs;

• Maintain effective flood risk management for Lowestoft in the long-term.

£7.6m Central

Government

£2.8m Local Levy

£3m Suffolk

CC

£1m Waveney DC

£10m Local

Enterprise Partnership

£1m Anglian Water

Projected total

£25.4m

Challenges:

• Those exposed to risk now need to co-finance mitigation projects

• We struggle to value to true economic impact of flood / erosion

• We therefore struggle to present a compelling business case in cost/benefit terms

Into the Dragons Den

By capturing the full benefits of mitigating risk we can finance our projects in new ways: Borrow the money based on future income Engage traditional investors, using value

generated from risk mitigation to repay them Approach public sector bodies for co-financing Bid for investment from innovative organisations

looking to invest in projects which generate wider value

In a nutshell Our projects generate a wide range of benefits. Risk reduction is just one. To unlock new solutions to the funding challenge we are:

Looking beyond traditional approaches Capturing the full range of benefits Looking for ways to create added value Presenting our projects to funders in new ways