What are the challenges?

The world invests some $2.5tn a year in the transportation, power, water and telecom systems. Yet this amount continues to fall short of the world’s ever-expanding needs, which results in lower economic growth and deprives citizens of essential services. The world needs to invest $3.3tn annually in economic infrastructure just to meet growth forecasts to 2030, with emerging countries accounting for 60 % of that need. Also, including social infrastructure and additional investment required to meet the UN Sustainable Development Goals, as much as $9 tn of capital expenditures should have to be engaged yearly by 2015.

What is the current situation?

Infrastructure investment has declined as a share of GDP in 11 of the G20 economies since the global financial crisis. There is now a clear need for strengthening expenditures in infrastructure on all regions of the world through a combination of public investment, corporate capex and public-private partnerships to meet the needs of the populations for basic infrastructure or more developed services. These needs materialise at a time when public spending in heavily constrained in most countries; however corporate investing capacities have improved and market liquidity in high: institutional investors and banks have $120 tn in assets that could partially support infrastructure projects. Some 87 % of these funds originate from advanced economies, while the largest needs are in middle-income economies, and a key challenge is to improve matching investors with projects on the basis of a better pipeline of bankable projects.

Questions to be addressed during the
2017 Paris InfraWeek:

How better identify a pipeline of bankable projects ? How make infrastructure spending more effective ? How identify the impediments that restrict the flow of financing ? How further integrate in bank and insurance regulation the specific nature of the infrastructure asset class ? How bring together public officials, corporates, equity providers, banks and multilaterals to structure, build and finance efficient and valuable projects ? And finally how finance to-morrow’s infrastructures ?

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