National Governors’ Association Infrastructure Advisory Panel

GIIA has joined the US National Governors’ Association Advisory Panel on Infrastructure which was launched at the recent 2019 NGA Summer Meeting held in Salt Lake City.

During the Summer Meeting incoming Chairman, Governor Larry Hogan (MD), announced a year-long initiative ‘Infrastructure: Foundation for Success’ aimed at helping Governors and State leaders solve State’s infrastructure challenges with a focus on bridges, roads, airports, railways, energy, water and broadband.

“Modern and well-functioning infrastructure is vital to a prosperous economy, public safety and quality of life for all Americans,” Gov. Hogan said.

“Through my NGA Chair’s Initiative, Infrastructure: Foundation for Success, America’s governors will build on their record of leadership to explore solutions that ensure that America’s infrastructure is responsive, efficient and safeguarded against cyber threats. Governors are dedicated to finding better ways to move people and goods and provide energy, water and communications services.”

GIIA Director of Corporate Affairs Jon Phillips said:

“GIIA is pleased to be supporting the NGA Chair’s Initiative focused on supporting States to provide the innovative and efficient infrastructure that is needed.”

“GIIA members own and operate more than 100 US infrastructure assets and through our relationship with the NGA we hope to play a key role in helping States unlock private investment to deliver the modern infrastructure vital to the needs of current and future generations.”

As a member of the Advisory Panel, GIIA will work with the NGA on events both in the United States and abroad. Members wishing to become more engaged in GIIA’s work with the NGA should contact Jon Phillips at jphillips@giia.net

For more information about the NGA Chairman’s Initiative Infrastructure: Foundation for Success please click here

Global Risk Roundtable

Global infrastructure investors are exposed to a broad range of economic, geo-political, technological and societal risks that impact investment strategies both for today and into the future. GIIA, in partnership with Associate Member Marsh & McLennan, is holding a series of roundtables looking at global risks for infrastructure investors.

The first such event was held last month in Tokyo and this month investors gathered in New York.  Karen Lockridge, Principle, Responsible Investment at Mercer set out some of the challenges posed by climate change, and attendees also heard from Michael McGowan, Principal at Mercer who provided an overview of the North American infrastructure risk landscape, looking at the makeup of deals in the region over the last decade.  Finally, Timo Pervane, Partner at Oliver Wyman shared insights on the way in which AI will be used by cities around the globe and what that means for infrastructure investors.

GIIA and Marsh & McLennan will be hosting a third Risk Roundtable for infrastructure investors in London on September 25th. For more details about this event please contact Tim Horan at thoran@giia.net

Europe’s energy transition

GIIA, in partnership with Aquila Capital, recently hosted an investor roundtable looking at the ongoing Energy Transition in Europe.

As 2020 draws closer, and with it the European Commission’s Renewable Energy Directive deadline for Member States to increase renewable energy levels to 20%, investors across Europe are responding to both opportunities and challenges from this significant area of international policy.

Attendees learnt that as many of the larger nations including France, the Netherlands and the United Kingdom lag behind on their targets, the ongoing transition to more renewable energies is more in focus now than ever before. Expert contributions to the event came from Tom Howes, Deputy Head of Economic Analysis and Financial Instruments at DG Energy; Dario Traum, Head of Policy for Europe, Middle East and North Africa at Bloomberg New Energy Finance; Dr Tor Syverud, Head of HydroPower Investments, Aquila Capital; and Mirko Masek, Partner, Freshfields who provided their insight on this important policy area.

With Government balance sheets stretched, it will continue to fall to the private sector to lead the push to cleaner energy generation. And with more than 200 renewable energy assets located across Europe, GIIA members are at the forefront of this challenge.

 

GIIA Members’ Assets Grow to $660bn

Analysis compiled by Associate Member EY, working with GIIA, reveals significant growth in members’ assets under management – rising from $500bn in 17/18 to more than $660bn – with 1,300 assets spanning 49 countries across 6 continents.

Globally, GIIA members’ assets provide the essential infrastructure needed by hundreds of millions of people every day – including utilities, energy, transport, telecommunications and social infrastructure.

Of particular note, members made significant investments in renewable energies increasing capacity to 48,000MW of wind power (up 16,300MW), 33,000MW of solar (up 20,300MW) and 14,800MW of hydro and biomass (up 7,300MW) since 17/18.

Based on responses by members, the findings show that for every £100bn of AUM, members will invest an additional £96.7bn in capex over the next five years – an increase of almost 20% since 17/18.

Click here to view the GIIA 2018/19 Global Asset Database

GIIA’s Submission To Infrastructure Finance Review

Following extensive consultation with investor members, GIIA has recently made a submission to the UK Government’s Infrastructure Finance Review.

Conducted jointly by HM Treasury and the Infrastructure Projects Authority, the Infrastructure Finance Reviews looks at the relative strengths and weaknesses of the UK’s infrastructure finance market,  the opportunities for the private sector in financing infrastructure,  the role of the EIB and the effectiveness of current Government tools to support the supply of infrastructure finance.

GIIA works constructively with governments around the globe to help build a robust evidence base that can provide a strong basis for future informed policy proposals facilitating private investment to meet infrastructure needs.

GIIA is grateful to Associate Member Clifford Chance for their assistance with this submission.

To read GIIA’s IFR submission please click here 

 

GIIA responds on EU Airport Charges Directive

GIIA has recently submitted a high level response to the consultants engaged by the European Commission looking into the EU Airport Charges Directive. We will continue to engage with members and stakeholders, including Airports Council International (ACI), on these matters.

GIIA members own stakes in 54 airports, across 13 countries which serve more than 585 million passengers each year.

Click the link below to read GIIA’s response.

GIIA response to Steer ACD consultation

GIIA responds to NIC’s call for evidence

GIIA, has responded on behalf of members to the National Infrastructure Commission’s Call for Evidence for their review, called The Future of Regulation Study.

The submission was a result of extensive consultations with GIIA members who collectively own and operate more than $660bn of infrastructure assets globally, with the largest single country allocation being the UK.

Director of Policy and Research Piers Thompson said:

“Economic regulation of water, energy and telecoms in the UK has facilitated the investment that has delivered world class infrastructure with improved outcomes for consumers, at low cost.”

“These sectors can continue to attract investment and deliver positive outcomes for consumers and the environment if objectivity, transparency and predictability continue to be core to the regulatory model.”

Read GIIA’s full submission here

GIIA is grateful to Allen & Overy for their assistance with this important submission on behalf of the sector.

 

 

Millions of UK pension savers supporting regional and national infrastructure

Analysis conducted by Global Infrastructure Investor Association (GIIA) has revealed the scale of ownership of infrastructure assets in the United Kingdom by pension savers.

GIIA has identified more than 8,500,000 individual UK pension pots, from 118 UK pension funds, that have a financial interest in regional and national infrastructure including airports, utilities, telecoms and renewables.

The funds have a total combined value in excess of £100bn, demonstrating the massive investment in infrastructure made by UK citizens.

CEO Andy Rose, speaking on the release of the figures, said the information shed an important light on the debate around infrastructure ownership.

“This research reveals that millions of UK pension savers are benefitting from their investment in regional and national infrastructure.”

“The data shows that much of the UK’s infrastructure is part-owned by local authority, retail, manufacturing and other pension funds whose members have invested their savings in the expectation of satisfactory returns in their later years.”

“Not only are these individual investors securing their own retirement savings, they are also helping to deliver the high quality, innovative and sustainable infrastructure the United Kingdom needs for future generations.”

 

GIIA gears up for busy week in Berlin

GIIA is pleased to be a Supporting Association for the Infrastructure Investor Global Summit taking place in Berlin from March 18th to 21st.

 GIIA will be welcoming up to 200 senior investors and guests to its Annual Reception, kindly hosted by Allianz Capital Partners. We look forward to seeing both new and familiar faces from across GIIA’s growing network over the course of the week in Berlin, and participating in two conference panels to provide a global outlook on the sector.

Already in 2019 GIIA has welcomed three new members, taking our global membership – which includes many of the world’s leading infrastructure investors and advisors – past seventy. The three new members include:

  • KKR – One of the world’s largest infrastructure asset managers with a diversified portfolio of infrastructure investments. KKR successfully raised a $7.4 bn fund in 2018.
  • Aviva Investors Global Services Ltd – part of Aviva Investors, an asset management company which has global assets under management of over £315 billion. In turn, Aviva Investors is part of the Aviva group, one of the largest insurance companies in the UK.
  • Alvarez & Marsal – a leading independent global professional services firm that provides specialist M&A transaction diligence, business performance improvement, transaction tax, fund launch and turnaround management services.

Speaking on the decision to join GIIA, Managing Director at Alvarez & Marsal, Jason Clatworthy said:

“Alvarez & Marsal are proud to join GIIA and we look forward to providing expertise by collaborating and supporting fellow members and the Board to ensure that the role of private capital in the delivery and operation of essential infrastructure around the globe is understood and valued by all relevant stakeholders.”

GIIA will also hold its Annual General Meeting in Berlin on 21st March where we will be reporting on our progress during 2018 and setting out plans for an expanded programme of activity in 2019.