How business can bridge the infrastructure gap - Revision history

Editor at 21:26, 18 January 2021

2021-01-18T21:26:49Z

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	* The key trends making our cities greener, safer and smarter.		* The key trends making our cities greener, safer and smarter.

−	[[Category:~~Publications_/_reports~~]] [[Category:~~Research_/_Innovation~~]] [[Category:DCN_Research,_Development_and_Innovation]] [[Category:~~Policy~~]] [[Category:~~DCN_Policy~~]] [[Category:~~Regulations~~]] [[Category:~~DCN_Regulation~~]] [[Category:Sustainability]]	+	[[Category:DCN_News]] [[Category:DCN_Policy]] [[Category:DCN_Regulation]] [[Category:DCN_Report]] [[Category:DCN_Research,_Development_and_Innovation]] [[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Policy]] [[Category:Regulations]] [[Category:Sustainability]]

Designing Buildings at 11:17, 29 November 2018

2018-11-29T11:17:55Z

← Older revision		Revision as of 11:17, 29 November 2018
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	These are not new challenges. They were discussed, for example, at the High-Level Panel on Infrastructure during the B20 and G20 in Cannes in 2011. But we have so far lacked a systematic framework for thinking about them, and about what both the public and private sector can do to tackle them.		These are not new challenges. They were discussed, for example, at the High-Level Panel on Infrastructure during the B20 and G20 in Cannes in 2011. But we have so far lacked a systematic framework for thinking about them, and about what both the public and private sector can do to tackle them.

−	A new World Economic Forum report, ~~[http://www.weforum.org/reports/strategic-infrastructure-mitigation-political-regulatory-risk-infrastructure-projects~~ Strategic Infrastructure: Mitigation of Political and Regulatory Risk in Infrastructure Projects], aims to fill that gap.	+	A new World Economic Forum report, Strategic Infrastructure: Mitigation of Political and Regulatory Risk in Infrastructure Projects, aims to fill that gap.

	First, we need to identify the root causes of political and regulatory risk. These include the way that perceptions of the public interest can change over time, as attitudes evolve on matters such as environmental responsibility; the nature of political systems, which make it difficult for a present parliament to circumscribe the sovereignty of a future parliament; and mis-perception by investors about the likelihood of public pressure mounting over an issue, and governments responding.		First, we need to identify the root causes of political and regulatory risk. These include the way that perceptions of the public interest can change over time, as attitudes evolve on matters such as environmental responsibility; the nature of political systems, which make it difficult for a present parliament to circumscribe the sovereignty of a future parliament; and mis-perception by investors about the likelihood of public pressure mounting over an issue, and governments responding.
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	* The key trends making our cities greener, safer and smarter.		* The key trends making our cities greener, safer and smarter.

−	[[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Policy]] [[Category:Regulations]] [[Category:Sustainability]]	+	[[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:DCN_Research,_Development_and_Innovation]] [[Category:Policy]] [[Category:DCN_Policy]] [[Category:Regulations]] [[Category:DCN_Regulation]] [[Category:Sustainability]]

Editor at 12:10, 13 February 2018

2018-02-13T12:10:04Z

← Older revision		Revision as of 12:10, 13 February 2018
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	* A better investment framework for Africa.		* A better investment framework for Africa.
	* Compact sustainable city.		* Compact sustainable city.
		+	* Concession agreement.
	* Industry Disruption: 10 ways real estate is changing.		* Industry Disruption: 10 ways real estate is changing.
	* Is Disruptive Innovation possible in the Construction Industry?		* Is Disruptive Innovation possible in the Construction Industry?

Editor at 13:58, 26 July 2017

2017-07-26T13:58:56Z

← Older revision		Revision as of 13:58, 26 July 2017
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	* 2050 and the Future of Infrastructure.		* 2050 and the Future of Infrastructure.
	* 3 ways the world’s fastest growing economies can close the infrastructure gap.		* 3 ways the world’s fastest growing economies can close the infrastructure gap.
		+	* A better investment framework for Africa.
	* Compact sustainable city.		* Compact sustainable city.
	* Industry Disruption: 10 ways real estate is changing.		* Industry Disruption: 10 ways real estate is changing.

Editor at 17:04, 18 July 2017

2017-07-18T17:04:37Z

← Older revision		Revision as of 17:04, 18 July 2017
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	* 2050 and the Future of Infrastructure.		* 2050 and the Future of Infrastructure.
		+	* 3 ways the world’s fastest growing economies can close the infrastructure gap.
	* Compact sustainable city.		* Compact sustainable city.
	* Industry Disruption: 10 ways real estate is changing.		* Industry Disruption: 10 ways real estate is changing.

Editor at 14:24, 28 June 2017

2017-06-28T14:24:22Z

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	[[File:How25.2.15.jpg\|link=File:How25.2.15.jpg]]		[[File:How25.2.15.jpg\|link=File:How25.2.15.jpg]]

−	The world is in urgent need of more and better infrastructure, and the sums that must be spent to narrow the infrastructure gap – an estimated $4 trillion a year – are far beyond what it is realistic to expect governments to raise in taxes. This means we need private investment, but private investors are wary of the risks involved in committing money to projects that will bring returns over a very long period of time. How can we increase investor confidence, to end the capital stand-off and unlock the necessary funds?	+	The world is in urgent need of more and better infrastructure, and the sums that must be spent to narrow the infrastructure gap – an estimated $4 trillion a year – are far beyond what it is realistic to expect governments to raise in taxes.

−	~~Caution is understandable~~, ~~because a wide range~~ of ~~political and regulatory~~ risks ~~can hit~~ projects ~~whose life cycle is longer than the political cycle~~. ~~For example~~, a future government could decide to impose new regulations or taxes, renege on commitments to pay, cut short a concession to operate an infrastructure asset or even nationalize it outright. Private investors weighing these risks also have to ~~consider~~ the ~~fact that judicial processes will not be efficient or effective in enforcing~~ the ~~original agreement.~~	+	This means we need private investment, but private investors are wary of the risks involved in committing money to projects that will bring returns over a very long period of time. How can we increase investor confidence, to end the capital stand-off and unlock the necessary funds?

−	~~These are not new challenges. They were discussed~~, ~~for example, at the High-Level Panel on Infrastructure during the B20 and G20 in Cannes in 2011. But we have so far lacked~~ a ~~systematic framework for thinking about them,~~ and ~~about what both~~ the ~~public and private sector can do to tackle them. A new World Economic Forum report, [http://www.weforum.org/reports/strategic-infrastructure-mitigation-~~political~~-regulatory-risk-infrastructure-projects Strategic Infrastructure: Mitigation of Political and Regulatory Risk in Infrastructure Projects], aims to fill that gap~~.	+	Caution is understandable, because a wide range of political and regulatory risks can hit projects whose life cycle is longer than the political cycle.

−	First we need to identify the root causes of political and regulatory risk. These include the way that perceptions of the public interest can change over time, as attitudes evolve on matters such as environmental responsibility; the nature of political systems, which make it difficult for a present parliament to circumscribe the sovereignty of a future parliament; and ~~misperception~~ by investors about the likelihood of public pressure mounting over an issue, and governments responding.	+	For example, a future government could decide to impose new regulations or taxes, renege on commitments to pay, cut short a concession to operate an infrastructure asset, or even nationalise it outright. Private investors weighing these risks also have to consider the fact that judicial processes will not be efficient or effective in enforcing the original agreement.
		+
		+	These are not new challenges. They were discussed, for example, at the High-Level Panel on Infrastructure during the B20 and G20 in Cannes in 2011. But we have so far lacked a systematic framework for thinking about them, and about what both the public and private sector can do to tackle them.
		+
		+	A new World Economic Forum report, [http://www.weforum.org/reports/strategic-infrastructure-mitigation-political-regulatory-risk-infrastructure-projects Strategic Infrastructure: Mitigation of Political and Regulatory Risk in Infrastructure Projects], aims to fill that gap.
		+
		+	First, we need to identify the root causes of political and regulatory risk. These include the way that perceptions of the public interest can change over time, as attitudes evolve on matters such as environmental responsibility; the nature of political systems, which make it difficult for a present parliament to circumscribe the sovereignty of a future parliament; and mis-perception by investors about the likelihood of public pressure mounting over an issue, and governments responding.

	There is no silver bullet in balancing investors’ need for predictability with electorates’ need for flexibility. But sometimes rules can be defined that allow for flexibility in a predictable way – an example being Germany’s feed-in tariff for newly built photovoltaic plants, which automatically adapts according to the amount of photovoltaic capacity connected to the grid.		There is no silver bullet in balancing investors’ need for predictability with electorates’ need for flexibility. But sometimes rules can be defined that allow for flexibility in a predictable way – an example being Germany’s feed-in tariff for newly built photovoltaic plants, which automatically adapts according to the amount of photovoltaic capacity connected to the grid.
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	Passing investment stability legislation and offering constitutional guarantees are part of what governments can do. But these are not enough on their own – they need to be backed by credible agencies and a strong commitment to anti-corruption. There is also scope for bilateral investment treaties to play a greater role. Although many such treaties already exist, they are often under-used, in part because protection clauses can be vaguely written and arbitration procedures controversial.		Passing investment stability legislation and offering constitutional guarantees are part of what governments can do. But these are not enough on their own – they need to be backed by credible agencies and a strong commitment to anti-corruption. There is also scope for bilateral investment treaties to play a greater role. Although many such treaties already exist, they are often under-used, in part because protection clauses can be vaguely written and arbitration procedures controversial.

−	Alongside government actions, the private sector could also develop a wider range of risk-mitigation measures. Many of the harder risks, such as assets being expropriated or local currencies becoming inconvertible, can be addressed though financial instruments. Carefully considered ownership structures, such as joint ventures with local partners and multilateral development banks, can help to deter political interference. And the greater the degree of professionalism, sustainability and openness with which a company operates, the less likely public pressure for political interference is to materialize in the first place.	+	Alongside government actions, the private sector could also develop a wider range of risk-mitigation measures. Many of the harder risks, such as assets being expropriated or local currencies becoming inconvertible, can be addressed though financial instruments.

−	~~Addressing the infrastructure gap is vital if the world is to urbanize~~, ~~continue~~ to ~~deliver economic growth, spread prosperity and meet~~ the ~~challenge of climate change. Mitigating~~ the ~~risks~~ of ~~private investment in infrastructure will be possible only~~ with the public ~~and private sector working together~~ in ~~genuine and transparent partnership~~.	+	Carefully considered ownership structures, such as joint ventures with local partners and multilateral development banks, can help to deter political interference. And the greater the degree of professionalism, sustainability and openness with which a company operates, the less likely public pressure for political interference is to materialise in the first place.

−	~~Our report on political and regulatory risk in~~ infrastructure ~~projects~~, ~~published today~~, ~~[http://www.weforum~~.~~org/reports/strategic-~~infrastructure~~-mitigation-political-regulatory-risk-infrastructure-projects is available here]~~.	+	Addressing the infrastructure gap is vital if the world is to urbanise, continue to deliver economic growth, spread prosperity and meet the challenge of climate change. Mitigating the risks of private investment in infrastructure will be possible only with the public and private sector working together in genuine and transparent partnership.

		+	-----
	Watch a session from Davos 2015 on [http://www.weforum.org/sessions/summary/closing-infrastructure-gap Closing the Infrastructure Gap].		Watch a session from Davos 2015 on [http://www.weforum.org/sessions/summary/closing-infrastructure-gap Closing the Infrastructure Gap].

−	Written by	+	Written by Pedro Rodrigues De Almeida, Director, Head of Infrastructure and Urban Development Industry.
		+
		+	[Image: The 405 freeway looking southbound running underneath the 10 freeway is shown in this aerial photo in Los Angeles, California September 29, 2012. REUTERS/Gina Ferazzi]
		+
		+	This article is also published on the [https://futureofconstruction.org/blog/how-business-can-bridge-the-infrastructure-gap/ Future of Construction Knowledge Sharing Platform] and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].

−	~~Pedro Rodrigues De Almeida~~, ~~Director, Head of Infrastructure and Urban Development Industry~~	+	--[[User:Future_of_Construction\|Future of Construction]] 14:51, 16 Jun 2017 (BST)

−	~~Image: The 405 freeway looking southbound running underneath the 10 freeway is shown in this aerial photo in Los Angeles, California September 29, 2012. REUTERS/Gina Ferazzi~~	+	= Find out more =

−	~~This article is also published~~ on the [https://futureofconstruction.org/ Future of Construction Knowledge Sharing] [https://futureofconstruction.org/ Platform] and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].	+	=== Related articles on Designing Buildings Wiki ===

−	~~--[[User:~~Future of Construction~~\|Future~~ of ~~Construction]] 14:51~~, ~~16 Jun 2017 (BST)~~	+	* 2050 and the Future of Infrastructure.
		+	* Compact sustainable city.
		+	* Industry Disruption: 10 ways real estate is changing.
		+	* Is Disruptive Innovation possible in the Construction Industry?
		+	* Our critical infrastructure is more vulnerable than ever. It doesn’t have to be that way.
		+	* The future of green infrastructure.
		+	* The key trends making our cities greener, safer and smarter.

−	[[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Policy]] [[Category:Regulations]] [[Category:Sustainability~~]] [[Category:Cost_/_business_planning]] [[Category:Property_development~~]]	+	[[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Policy]] [[Category:Regulations]] [[Category:Sustainability]]

Future of Construction at 13:51, 16 June 2017

2017-06-16T13:51:07Z

← Older revision		Revision as of 13:51, 16 June 2017
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	This article is also published on the [https://futureofconstruction.org/ Future of Construction Knowledge Sharing] [https://futureofconstruction.org/ Platform] and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].		This article is also published on the [https://futureofconstruction.org/ Future of Construction Knowledge Sharing] [https://futureofconstruction.org/ Platform] and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].
		+
		+	--[[User:Future of Construction\|Future of Construction]] 14:51, 16 Jun 2017 (BST)

	[[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Policy]] [[Category:Regulations]] [[Category:Sustainability]] [[Category:Cost_/_business_planning]] [[Category:Property_development]]		[[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Policy]] [[Category:Regulations]] [[Category:Sustainability]] [[Category:Cost_/_business_planning]] [[Category:Property_development]]

ISIDORAKOSTA at 13:40, 4 April 2017

2017-04-04T13:40:16Z

← Older revision		Revision as of 13:40, 4 April 2017
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−	[[File:How25.2.15.jpg]]	+	[[File:How25.2.15.jpg\|link=File:How25.2.15.jpg]]

	The world is in urgent need of more and better infrastructure, and the sums that must be spent to narrow the infrastructure gap – an estimated $4 trillion a year – are far beyond what it is realistic to expect governments to raise in taxes. This means we need private investment, but private investors are wary of the risks involved in committing money to projects that will bring returns over a very long period of time. How can we increase investor confidence, to end the capital stand-off and unlock the necessary funds?		The world is in urgent need of more and better infrastructure, and the sums that must be spent to narrow the infrastructure gap – an estimated $4 trillion a year – are far beyond what it is realistic to expect governments to raise in taxes. This means we need private investment, but private investors are wary of the risks involved in committing money to projects that will bring returns over a very long period of time. How can we increase investor confidence, to end the capital stand-off and unlock the necessary funds?
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	Image: The 405 freeway looking southbound running underneath the 10 freeway is shown in this aerial photo in Los Angeles, California September 29, 2012. REUTERS/Gina Ferazzi		Image: The 405 freeway looking southbound running underneath the 10 freeway is shown in this aerial photo in Los Angeles, California September 29, 2012. REUTERS/Gina Ferazzi

−	This article ~~was originally~~ published on the [https://futureofconstruction.org/ Future of Construction Knowledge Sharing] [https://futureofconstruction.org/ Platform]and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].	+	This article is also published on the [https://futureofconstruction.org/ Future of Construction Knowledge Sharing] [https://futureofconstruction.org/ Platform] and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].

	[[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Policy]] [[Category:Regulations]] [[Category:Sustainability]] [[Category:Cost_/_business_planning]] [[Category:Property_development]]		[[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Policy]] [[Category:Regulations]] [[Category:Sustainability]] [[Category:Cost_/_business_planning]] [[Category:Property_development]]

ISIDORAKOSTA: Created page with "File:How25.2.15.jpg The world is in urgent need of more and better infrastructure, and the sums that must be spent to narrow the infrastructure gap – an estimated $4 trill..."

2017-04-04T12:40:20Z

Created page with "File:How25.2.15.jpg The world is in urgent need of more and better infrastructure, and the sums that must be spent to narrow the infrastructure gap – an estimated $4 trill..."

New page

[[File:How25.2.15.jpg]]

The world is in urgent need of more and better infrastructure, and the sums that must be spent to narrow the infrastructure gap – an estimated $4 trillion a year – are far beyond what it is realistic to expect governments to raise in taxes. This means we need private investment, but private investors are wary of the risks involved in committing money to projects that will bring returns over a very long period of time. How can we increase investor confidence, to end the capital stand-off and unlock the necessary funds?

Caution is understandable, because a wide range of political and regulatory risks can hit projects whose life cycle is longer than the political cycle. For example, a future government could decide to impose new regulations or taxes, renege on commitments to pay, cut short a concession to operate an infrastructure asset or even nationalize it outright. Private investors weighing these risks also have to consider the fact that judicial processes will not be efficient or effective in enforcing the original agreement.

These are not new challenges. They were discussed, for example, at the High-Level Panel on Infrastructure during the B20 and G20 in Cannes in 2011. But we have so far lacked a systematic framework for thinking about them, and about what both the public and private sector can do to tackle them. A new World Economic Forum report, [http://www.weforum.org/reports/strategic-infrastructure-mitigation-political-regulatory-risk-infrastructure-projects Strategic Infrastructure: Mitigation of Political and Regulatory Risk in Infrastructure Projects], aims to fill that gap.

First we need to identify the root causes of political and regulatory risk. These include the way that perceptions of the public interest can change over time, as attitudes evolve on matters such as environmental responsibility; the nature of political systems, which make it difficult for a present parliament to circumscribe the sovereignty of a future parliament; and misperception by investors about the likelihood of public pressure mounting over an issue, and governments responding.

There is no silver bullet in balancing investors’ need for predictability with electorates’ need for flexibility. But sometimes rules can be defined that allow for flexibility in a predictable way – an example being Germany’s feed-in tariff for newly built photovoltaic plants, which automatically adapts according to the amount of photovoltaic capacity connected to the grid.

Passing investment stability legislation and offering constitutional guarantees are part of what governments can do. But these are not enough on their own – they need to be backed by credible agencies and a strong commitment to anti-corruption. There is also scope for bilateral investment treaties to play a greater role. Although many such treaties already exist, they are often under-used, in part because protection clauses can be vaguely written and arbitration procedures controversial.

Alongside government actions, the private sector could also develop a wider range of risk-mitigation measures. Many of the harder risks, such as assets being expropriated or local currencies becoming inconvertible, can be addressed though financial instruments. Carefully considered ownership structures, such as joint ventures with local partners and multilateral development banks, can help to deter political interference. And the greater the degree of professionalism, sustainability and openness with which a company operates, the less likely public pressure for political interference is to materialize in the first place.

Addressing the infrastructure gap is vital if the world is to urbanize, continue to deliver economic growth, spread prosperity and meet the challenge of climate change. Mitigating the risks of private investment in infrastructure will be possible only with the public and private sector working together in genuine and transparent partnership.

Our report on political and regulatory risk in infrastructure projects, published today, [http://www.weforum.org/reports/strategic-infrastructure-mitigation-political-regulatory-risk-infrastructure-projects is available here].

Watch a session from Davos 2015 on [http://www.weforum.org/sessions/summary/closing-infrastructure-gap Closing the Infrastructure Gap].

Written by

Pedro Rodrigues De Almeida, Director, Head of Infrastructure and Urban Development Industry

Image: The 405 freeway looking southbound running underneath the 10 freeway is shown in this aerial photo in Los Angeles, California September 29, 2012. REUTERS/Gina Ferazzi

This article was originally published on the [https://futureofconstruction.org/ Future of Construction Knowledge Sharing] [https://futureofconstruction.org/ Platform]and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].

[[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Policy]] [[Category:Regulations]] [[Category:Sustainability]] [[Category:Cost_/_business_planning]] [[Category:Property_development]]