The demand for world class infrastructure is intensifying in Asia. The region cannot maintain growth rates fueled by industrialization without improved infrastructure. The question of what types of infrastructure need to be built and who should provide funding remains unanswered. Given constraints on state budgets, actions taken by policymakers over the next year will be critical to shaping future business opportunities in Asia.
Scott Dunn, AECOM’s Vice President for Growth and Strategy, Southeast Asia, delivered a Financial Innovations Lab session on Improving Infrastructure in Asia during the Milken Institute Asia Summit held in Singapore recently to an audience comprising of institutional investors, private investors and development finance institutions such as the IFC and World Bank.
The session explored the difficulties on increasing and improving infrastructure in Asia, highlighting challenges on accessing capital. A number of financing models were discussed throughout the session including specifics on what works on the ground for project developers and investors to better align risk and return expectations.
“A city’s ability to deliver the necessary urban infrastructure for sustainable and effective growth is intrinsically linked to its ability to attract and retain capital, both in terms of human resources and talent, as well as financial capital. With increases in spending on infrastructure, the global market is constantly looking for opportunities in large scale infrastructure project with good returns,” said Scott.