Home' Future Building: The Australian Infrastructure Review : December 2011 Contents The changing nature of UK PPPs
‘You don’t want to discourage investment
through extremely drawn-out processes.’
Wind farms are one example. In the past it wasn’t
uncommon for a wind farm to take between four
and five years to win approval. Offshore wind farms
could take even longer to allow for environmental
impact studies such as bird migratory patterns.
The aim is to ensure projects are put to due
diligence without the long delays. Under the
Government of Prime Minister Cameron, the
default answer to projects deemed to promote
sustainable development is ‘yes’, unless there’s a
reason not to proceed, Segars says.
‘Projects could involve challenges and appeals
before they can be finally approved. Meanwhile,
investors are standing by during this whole process,’
‘If there was an alternative system and they
could turn to a different country where the decision
is made more quickly, then they could deploy
capital at less cost.’
Efforts to streamline the planning process
come as the United Kingdom puts in place the
most ambitious targets on greenhouse gases of
any developed country. The announcement in May
outlined a 50 per cent cut in carbon emissions,
averaged over the years 2023 to 2027, compared
with 1990 levels.
The carbon budget runs from 2023 to 2027 –
part of the efforts to meet legally binding emissions
cuts of 80 per cent by 2050 – and will put the
United Kingdom on target for 60 per cent cuts by
The trouble is, the Government’s share of
infrastructure spending is slipping. After a surge of
spending on hospitals and other social infrastructure
under the previous Government, the proportion of
money coming from the public purse is expected
to shrink considerably in the coming years.
‘Over the past 15 years, the split has been 60/40.
That’s because the previous Government went on a
drive to upgrade social infrastructure through PPPs,’
‘Now we’re thinking that split will come down to
The central Government aims at improving
planning transparency and timing with a new National
Planning Framework that helps centralise coordination
of projects. With public consultations wrapping up at
the time Future Building went to press, the framework
sets out the Government’s economic, environmental
and social planning policies.
Taken together, the policies articulate the
Government’s vision of sustainable development,
which should be interpreted and applied locally to
meet local aspirations.
Volume 2 Number 2
The trouble is,
share of infrastructure
spending is slipping.
...the proportion of
money coming from
the public purse is
expected to shrink
considerably in the
ABOvE: Doug Segars,
Head of Financial Markets
Group, Infrastructure UK
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