GIIA highlights 12 months of progress during packed week in Berlin

GIIA reported significant progress on its global infrastructure agenda in March as its Members gathered in Berlin for the Association’s AGM.

The AGM was the culmination of a big week for GIIA which included a high profile presence at the infrastructure sector’s major conference; the launch of a first of a kind report on the impacts of private investment in infrastructure; and a packed evening reception for Members and Guests.

In his report to the GIIA Board, CEO Andy Rose highlighted progress made in his first 12 months including:

  • Growing membership of GIIA from both investors and professional services companies
  • Producing our first major evidence-based report, in conjunction with PWC, entitled Global Infrastructure Investment: The role of private capital in the delivery of essential assets and services 
  • Creating a database, with the support of EY, of GIIA member assets and the impact of these investments around the world
  • Establishing a global tax working group
  • Forming regional networks in North America, Europe and Australasia
  • Engagement with the UK, US and Canadian Governments
  • Participation in OECD/ World Economic Forum Events
  • High profile articles in the UK, Canada and Brussels
  • Over 20 speaking engagements

GIIA launches first of a kind report into private investment in infrastructure

Private investors, including pension funds, sovereign wealth funds and specialist investors are playing a key role in delivering improvements in world infrastructure, according to a new report by GIIA and PwC.

Global Infrastructure Investment: The role of private capital in the delivery of essential assets and services is the first evidence-based account of the contribution of private capital to major infrastructure.  It explores the increasing role of the private sector in investing in infrastructure and delivering essential public services.

The analysis of case studies shows that private investment in infrastructure has produced improvements for consumers, driven by a need to compete (in particular for non-monopolistic infrastructure such as seaports and airports), shifting strategy towards customers; and a desire to meet ever greater efficiency targets set by regulators.

Andy Rose, CEO, Global Infrastructure Investment Association commented:

“This report makes an important contribution to the debate about the role of private finance in delivering the world class infrastructure that is so clearly needed in both developed and developing markets.

“By presenting the evidence base through case studies, the positive role private capital can play is clearly shown. GIIA members are demonstrating that they can improve the performance and efficiency of the infrastructure they own and operate whilst responding to the challenges set by regulators on behalf of consumers.

“With Governments around the world facing constraints on spending, efficient private capital is pivotal in closing the infrastructure gap”.

The report warns that whilst the overall picture is a positive one, the infrastructure industry will need to continue to develop and modernise – with particular focus on managing asset performance, being more transparent in ownership and governance structures, and developing greater ability to invest in new infrastructure, through “greenfield” allocations and new investment structures.

Colin Smith, partner at PwC commented:

“With infrastructure a relatively new market, having emerging over the last two decades, there was minimal evaluation on the impact of specialist investors on the world’s infrastructure.  We believe this is the first global study of its kind.

“It is clear through the analysis that private investment has had a profound and positive impact on the developed world’s infrastructure, and is beginning to take hold in the developing world. We have seen consistent themes with performance higher through good management and continuing investment.

“It is important that investors continue to demonstrate strong asset management skills so that the industry is well positioned to drive the next wave of development and improvement.”

 The full report can be found here.

 

GIIA helping to shape the UK’s first National Infrastructure Assessment

A Financing Roundtable to review barriers to bringing in private investment into infrastructure and how the UK Government might address these was attended by GIIA and a number of its member companies.

The event, organised and chaired by the National Infrastructure Commission (NIC), heard about the importance of Government providing a strong narrative for its infrastructure pipeline so that investors can prepare for and support Government’s aspirations. The regulatory model, underpinned by transparent and fair regulation, was seen as an excellent model to attract private capital. The output of the Roundtable will be used to inform the NIC’s first National Infrastructure Assessment.

GIIA engages with Canadian Government on National Infrastructure Bank

GIIA held a series of discussions this week with Ministers and officials representing National and Provincial Governments as Canada looks to implement the announcement in the Fall Economic Statement 2016 to create the Canada Infrastructure Bank.

CEO Andy Rose spoke at two events in Ottawa and Montreal organised by the CD Howe Institute under the theme; Building Institutional Investment Opportunities for Canadian Capital Projects. The events were attended by a number of CEOs representing industry including a number of GIIA member firms. There was also strong representation from Government.

Andy shared insights and lessons learned from his experience working within UK Government on similar projects including the formation of Infrastructure UK, now responsible for the £40 billion guarantee programme , and the establishment of both HCA-Investments and the Green Investment Bank.

Andy commented “the Canadian Government has made a clear statement of intent on the importance of infrastructure investment in its future economic growth and sees the IB as a critical element to attract private sector investment. GIIA strongly supports this initiative. I was very impressed with the quality and seniority of the participation at both the Roundtable and the Conference organised by the CD Howe Institute and it was a pleasure to have been able to share experience on this very important topic.”

Following the events Andy returned to Ottawa for bilateral discussions with representatives of the Canadian Government.