Home' Future Building: The Australian Infrastructure Review : Volume 5 Number 1 Contents 12 futurebuilding Volume 5 Number 1
This was the warning issued by David
Thodey, the B20 Infrastructure and
Investment Taskforce Coordinating Chair
and Telstra Chief Executive, at a recent panel
discussion in Sydney, hosted by Westpac
Institutional Bank as part of its Deeper
The taskforce is one of four established
by the Business 20 (B20) forum, through
which the private sector produces policy
recommendations for the annual meeting of
the Group of 20 (G20) leaders.
The B20 brings together business
leaders from across G20 member
countries to reflect the key role of the
private sector as the main driver of strong,
sustainable and balanced growth.
'If you go out to 2030 and look at all the
infrastructure investment requirements, you
get to this mind-blowing number of $60--$70
trillion worth of money, or, let's say, of
opportunity that is needed,' said Thodey,
who delivered the keynote address.
'And, if you go to any government,
they'll always say that they want to build
the infrastructure, but somewhere between
the opportunity and the reality is this chasm
because these projects are not coming online
as quickly as you would want.
'All the data shows that when you look
at it in terms of the money that needs to be
allocated to these projects, compared to
funding available from government and the
private sector, there's a $15-trillion gap.'
Specifically, according to the taskforce's
findings, it is estimated that by 2030,
$60--$70 trillion in additional infrastructure
capacity will be needed globally; however,
under current conditions, only $45 trillion is
likely to be realised, leaving a shortfall.
Furthermore, the taskforce estimated
that closing this gap could create up to 100
million additional jobs and generate
$6 trillion in economic activity every year.
To maximise the opportunity, it found
that while governments have a crucial role
to play in closing the gap, the private sector
will be required to play a larger part in the
Overcoming the barriers
Despite the business community being ready
to play its part, the taskforce concluded
that the greatest barrier to more private
involvement in public infrastructure
remained the absence of a credible pipeline
of bankable, investment-ready infrastructure
projects offering acceptable risk-adjusted
returns to both public and private investors.
'Why is this happening? You look
around the world and there's no lack of
money, but somehow, it's not flowing to the
right projects,' Thodey said, in relation to the
'Major infrastructure funds say they see
all this opportunity, but there just aren't that
many bankable projects -- that is, projects
that are ready for the funding round.
BUILDING A CREDIBLE INFRASTRUCTURE
PIPELINE: A PRIVATE, PUBLIC AND
Over the next 15 years, the global demand for infrastructure development is looking at a
projected investment shortfall of up to $15 trillion. Not addressing this shortfall means potentially
forgoing up to 100 million jobs and $6 trillion in economic activity every year.
Make us your first port of call
'It is estimated that by 2030,
between $60 and $70 trillion in
additional infrastructure capacity
will be needed globally. But ... only
$45 trillion is likely to be realised'
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