The Smart City financing model works as follows:

 

1. Investment Focus

The fund targets strategic areas such as:

• Digital infrastructure (e.g., 5G networks, data centers)

• Energy efficiency and sustainable buildings

• Smart transportation and mobility (e.g., EV charging stations, car-sharing systems)

• Sensor-based technologies that improve quality of life (e.g., lighting, safety, air quality monitoring)

 

2. Cooperation with Cities

The fund collaborates directly with cities and municipal operators:

• It finances specific projects in exchange for long-term returns (e.g., rental income, service fees, energy savings)

• Projects can take the form of public-private partnerships (PPPs)

 

3. Return on Investment

The fund provides returns to investors through:

• Asset value appreciation (e.g., upgraded infrastructure becomes more valuable)

• Cash flow from projects (e.g., payments for services, leasing of data infrastructure, EV charging revenues)

 

Example Investment:

The fund might invest in the construction of smart public lighting in a city, which:

• Reduces energy consumption

• Increases public safety

• Includes sensors for data collection (e.g., air pollution, pedestrian movement)

 

The city pays for the service through leasing or from the cost savings achieved, and the fund collects the return.