By 2030, 60% of the world’s population will be living in urban areas. As relentless urbanisation increases the pressure placed on infrastructure, there is an acute need for innovative infrastructure financing. In this commentary for InfraNews, Johannes Schmidt – Siemens Financial Servcies’ CEO of Project and Structured Finance, Infrastructure & Cities and Industry – discusses the challenges, and opportunities, ahead.
Infrastructure finance has undergone a number of changes in recent years, the most noticeable being the rise of public-private partnerships and variant funding models. But as the world’s population becomes increasingly urbanised and the pressure on urban infrastructure continues to grow, there is a clear opportunity for private sector financiers to increase their involvement – and to bring with them a range of new benefits. Writing in Project Finance International, Johannes Schmidt, CEO Project and Structured Finance, Infrastructure & Cities at Siemens Financial Services, discusses the changing nature of infrastructure finance, the increasing need for innovate financing solutions, and the role that private finance has to play in the future of our cities.
The government wants to encourage private sector funds into under-resourced UK road infrastructure. But how best to attract the levels of investment required from pension funds, sovereign wealth funds and other institutional investors? In a thought-piece published in Infrastructure Journal, Ashley Blows, Global Head of Infrastructure in the Project Finance group at Natixis, describes the sort of revenue structures and economic incentives that may be required.