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Economic growth dominates global policy agenda.
Infrastructure investment is regarded as the prime mover.
An increase from an average of 3%
• USA 2.4% → China 9%
Estimated additional funding required over the next 5 years = US$ 1.4tn pa
Can this be funded? To preserve the credit to GDP ratio global
credit must double;
US$ 109tn 2010 → US$ 210tn2020
What capacity remains to fund an expanded infrastructure programme?
Global Institutional funds = US$ 65tn
Asset allocation to infrastructure averages 6% = US$ 4tn
An asset allocation of 11% would be needed to fund the planned marginal expenditure over next 5 years.
Context
Insufficient funds to meet demand
Traditional financial models are inadequate
Projects complexity is growing
Risk of overspend is unacceptable.
Conventional project management is flawed.
Why form a think tank? Infrastructure investment is transformative.
It dominates economic policy
Inherent problems with mega projects need to be understood and resolved.
Pragmatic and innovative thinking is necessary.
Nations that get this right will prosper.
Initial research Why mega projects are delivered late and over budget.
Relevance of PPP to large complex programmes and the rise of new funding structures.
‘Dark Risk’ in complex infrastructure projects
The Problem with Airports…are they viable or just necessary?
Will the Middle East consume the majority of global funds for the infrastructure asset class?
Can infrastructure expenditure still stimulate economic growth?
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