Australia is seen as an attractive destination for infrastructure investment. A recent report identified telecommunications, regulated assets, and renewable energy infrastructure projects as being amongst the most popular asset classes for investment.
Infrastructure investment is being made by Australia’s Federal and State governments both singularly and in conjunction with the private sector. In these instances, the Australian government provides a framework for developing contractual relationships for delivering public infrastructure and related services through a vehicle known as Public-Private Partnerships (PPPs).
The driving forces behind the infrastructure construction boom include:
- A forecast of a 24% population growth by 2034 and a requirement for new infrastructure;
- The impact of COVID-19 and the government’s strategy to invest in infrastructure as a means of stimulating the economy;
- Record low-interest rates make the cost of capital lower than any other time in recent history; and
- A recognition that new and accelerated infrastructure works will create new and additional jobs.
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