ASIA
18 October 2014
Business welcomes G20 progress on Global Infrastructure Initiative
Business leaders have welcomed G20 commitments in Washington last week to progress a Global Infrastructure Centre or Hub as a mechanism to support the Global Infrastructure Initiative.
Business leaders have welcomed G20 commitments in Washington last week to progress a Global Infrastructure Centre or Hub as a mechanism to support the Global Infrastructure Initiative agreed by G20 Finance Ministers and Central Bank Governors in Cairns last month.
Mr David Thodey, B20 Infrastructure & Investment Taskforce Coordinating Chair and CEO of Telstra, said it is clear G20 governments appreciate the significant role investment in infrastructure can play in addressing the growing global growth and employment challenge.
“Against the backdrop of a fragile and uneven global recovery, the IMF has identified infrastructure investment as important for supporting the global recovery and lifting growth potential, particularly in countries with clearly identified needs,” Mr Thodey said. “Importantly, raising the efficiency of this investment would benefit all countries.
“The establishment of an appropriately resourced Global Infrastructure Hub with a clear mandate and strong governance which draws on and coordinates inputs from key stakeholder organisations will stimulate much needed investment in infrastructure in the medium to long term.”
Mr Thodey said that although there is a wealth of information and support on leading practices available globally, it is fragmented, often overwhelming, and is seldom integrated into real decision making processes and practices.
“While several organisations are exploring initiatives to improve information sharing, no one organisation is addressing all the necessary elements, and their distinct mandates make coordination difficult.
“A Global Infrastructure Hub will collect and disseminate leading practices across the infrastructure life-cycle, with the objective of increasing the pipeline of bankable projects, improving the productivity of investments, and accelerating the development of infrastructure as an asset class.
“The Hub would work closely with international organisations in a structured network to leverage their expertise and build on and coordinate existing mechanisms and initiatives.
"To ensure it can fully undertake this role it should be adequately resourced with dedicated expert resources with private sector experience and focused on specific, measurable outcomes.”
Mr Thodey said developing successful infrastructure programs and projects is complex and challenging, from project selection, preparation and delivery, through to fostering an enabling environment for investment.
“Lifting governments’ capability and increasing standardisation and comparability across markets is critical to increasing private investment in infrastructure, developing the infrastructure asset class, and making infrastructure investment more efficient.
“Our analysis suggests that improving project preparation, structuring and delivery could increase infrastructure capacity by ~ $20 trillion by 2030.
“A Global Infrastructure Hub could make an estimated $2 trillion contribution to this and drive an additional $600 billion of economic activity and 10 million jobs per annum over the long-term.
“We look forward to G20 Leaders confirming in Brisbane the establishment of a Global Infrastructure Hub with a well defined mandate,” Mr Thodey said.
Mr David Thodey, B20 Infrastructure & Investment Taskforce Coordinating Chair and CEO of Telstra, said it is clear G20 governments appreciate the significant role investment in infrastructure can play in addressing the growing global growth and employment challenge.
“Against the backdrop of a fragile and uneven global recovery, the IMF has identified infrastructure investment as important for supporting the global recovery and lifting growth potential, particularly in countries with clearly identified needs,” Mr Thodey said. “Importantly, raising the efficiency of this investment would benefit all countries.
“The establishment of an appropriately resourced Global Infrastructure Hub with a clear mandate and strong governance which draws on and coordinates inputs from key stakeholder organisations will stimulate much needed investment in infrastructure in the medium to long term.”
Mr Thodey said that although there is a wealth of information and support on leading practices available globally, it is fragmented, often overwhelming, and is seldom integrated into real decision making processes and practices.
“While several organisations are exploring initiatives to improve information sharing, no one organisation is addressing all the necessary elements, and their distinct mandates make coordination difficult.
“A Global Infrastructure Hub will collect and disseminate leading practices across the infrastructure life-cycle, with the objective of increasing the pipeline of bankable projects, improving the productivity of investments, and accelerating the development of infrastructure as an asset class.
“The Hub would work closely with international organisations in a structured network to leverage their expertise and build on and coordinate existing mechanisms and initiatives.
"To ensure it can fully undertake this role it should be adequately resourced with dedicated expert resources with private sector experience and focused on specific, measurable outcomes.”
Mr Thodey said developing successful infrastructure programs and projects is complex and challenging, from project selection, preparation and delivery, through to fostering an enabling environment for investment.
“Lifting governments’ capability and increasing standardisation and comparability across markets is critical to increasing private investment in infrastructure, developing the infrastructure asset class, and making infrastructure investment more efficient.
“Our analysis suggests that improving project preparation, structuring and delivery could increase infrastructure capacity by ~ $20 trillion by 2030.
“A Global Infrastructure Hub could make an estimated $2 trillion contribution to this and drive an additional $600 billion of economic activity and 10 million jobs per annum over the long-term.
“We look forward to G20 Leaders confirming in Brisbane the establishment of a Global Infrastructure Hub with a well defined mandate,” Mr Thodey said.