The announcement of a global infrastructure hub, a product of the G20 conference held in Brisbane in November 2014, has been met with mixed views. The hub, to be located in Sydney and funded by G20 participants, is intended to support public and private investment in global infrastructure projects.
The hub will, amongst other things, help to match investors with investment-ready infrastructure projects and will accelerate the development of infrastructure assets, providing leading-practices and standards to assist the development of successful private public partnerships (PPPs). Surprisingly though, the hub has only been given a 4-year life with no option to renew; a seemingly short period given the long life-cycle of many infrastructure projects.
Irrespective of the hub’s short life, this initiative:
- has the potential to unlock an estimated AU$2 trillion in global infrastructure capacity over the next 15 years;
- will promote better infrastructure project and PPP standards and innovation;
- will reduce costs (by improving information and transparency); and
- will encourage investment into infrastructure.
This is a positive step forward and has the ability to contribute to the success of future PPP infrastructure projects.