A big year for infrastructure

The global private infrastructure market is now worth $US1 trillion and the world’s aging population, a global energy transition and ongoing cost of living challenges could see 2023 as a brilliant year for infrastructure projects.

By Jacquelene Pearson*

Did you know that every day in the United States of America 10,000 people currently celebrate their 65th birthday? They are members of the Post-War Baby Boomer Generation and they are fueling worldwide demand for more nursing homes, hospitals and healthcare facilities. They are one of the primary reasons why 2023 is expected to be another promising year for infrastructure globally.

Another, equally important, reason why infrastructure is expected to do very well this year is the now rapid transition to renewable energy. The latest climate change projections have certainly encouraged many countries to gain pace with their transition plans but the biggest factor pushing the race to renewables has been Russia’s ensuing war in the Ukraine and its destabilising of the supply of gas to most of western Europe.

Anyone with a stake in developing new energy pipelines will be well-placed to take advantage of the number of national governments now pushing the private sector to cut their carbon emissions to meet net-zero targets.

In a nutshell, 2023 promises to be an excellent year for renewable energy infrastructure projects combined with building aged care facilities and new hospitals. Certain sectors of the infrastructure market are popular for public-private partnerships. They are also likely to be long-term projects so the pricing has had inflation factored in. This makes infrastructure appear as a bit of a safe-haven from the inflationary pressures expected to keep chipping away at other economic sectors throughout the year.

With such a promising outlook, how do you go about securing the best possible channels of funding for your next infrastructure project?

McKinsey and Partners, the global consultants, have projected that $3.5 trillion will be needed for infrastructure investment worldwide just to keep pace with GDP. That is excellent news for the world’s largest private equity investors who want the relative transparency and safety of investing in infrastructure through public-private partnerships (PPP) and long-term projects.

Acuity Funding have been arranging infrastructure funding for our clients since 1994 and that longevity means we have built enduring relationships with an array of finance sources – banks, hedge funds, superannuation funds, Sovereign funds, private funds and High Net Worth individuals. These relationships mean we can facilitate access to funding of any amount for any size of infrastructure project.

Infrastructure investors and developers need to focus on making sure their commercial interests and country’s long-term goals are well-served. That means attention to the particulars of contractual arrangements and legislative requirements with any government or public authority. This can become even more complicated if your project is cross-border, in a country where you do not have a great deal of cultural understanding or business connections.

Acuity’s global desk and our membership of SWIFT both mean we are able to fulfil your needs as a funding arranger but also assist with other critical aspects of your cross-boarder transactions and project management. Contact us today to discuss your next infrastructure project.

*Jacquelene Pearson is Acuity Funding’s Content Editor