Home' Future Building: The Australian Infrastructure Review : July 2011 Contents futurebuilding 57
Volume 2 Number 1
Australia faces an exciting period of growth
and transition. Demand for our energy
resources is booming, not only from growing
Asian economies but here at home. We are
renewing our schools and hospitals, and
making our cities more sustainable as we
transition to lower carbon economy.
Our goals are ambitious and never
before has the role of the private sector been
Westpac Institutional Bank is determined
to take a leading role in these changes.
While global capital markets have been
shaken in recent years, Westpac has the
scale, skills and depth to match the right
financing to the job. Global capital markets
may have changed but it doesn’t mean we
need to scale back our goals.
As federal and state governments
safeguard balance sheets we expect
Australian policymakers to build on our
country’s robust track record of private
investment in infrastructure through private
investment and public private partnerships.
That’s because the scale of the work ahead is
huge and government can’t do it alone.
Australia will need about $420 billion
of new investment in energy and associated
infrastructure to meet growing demand at
home and abroad. The federal government
requires 20 per cent of electricity to be
derived from renewable resource by 2020.
The bill will likely include about $140
billion of investment in the electricity sector
and $8 billion in gas pipelines.
Even if equity backs 40 per cent of the
bill, that still leaves about $250 billion which
will need to be raised through debt markets.
For Westpac, that means working closely
with our customers to provide them with an
understanding that can form the basis of a
competitive business opportunity - whether it
involves a wind farm in South Australia or a
gas pipeline in southern Queensland.
Westpac Institutional Bank has over
3000 people with a global footprint
spanning Asia, the UK, the US and New
Zealand. Our expertise has helped launch
some of the country’s most important
infrastructure projects such as arranging
and underwriting finance for Victoria’s $3.6
billion desalination plant at Wonthaggi in
But we need to build our partnership
with government. For Australia to realise
its infrastructure goals we need a clear
pipeline of projects and a rebalancing of
risk with government. That should assist in
unlocking funding from Australia’s pool of
We are thinking of the future;
identifying the key players and the right
capital solutions. We’re determined to take
advantage of our knowledge in this market
so we can continue to play a leadership role.
Property, Government & Infrastructure
Westpac Institutional Bank
FUNDING FUTUrE INFrASTrUcTUrE
Wonthaggi desalination plant: Welding of pipe sections leading 84 km to Melbourne
315691E_Westpac | 1709.indd 2
5/30/11 3:15 PM
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