The timing for governments, banks and private investors to invest in infrastructure couldn’t be better, says Mike Wilkins, Managing Director of Infrastructure Finance at Standard & Poor’s, in KPMG’s recent Insight Magazine. In the article Wilkins explains how 20 years of experience rating project finance transactions helps S&P to understand why projects fail, and what can be done to mitigate the risk of default in the future. This understanding, he says, is particularly useful considering that the private and public sector alike are waking up to the potential short and long term economic benefits such investment creates, also coined as the ‘multiplier effect’. Looking at Europe, Wilkins points out that recent initiatives such as the ‘Juncker Plan’ – an initiative announced by the European Commission in January, which aims to deliver €315 billion of infrastructure investment over the next three years via a pipeline of 2,000 projects – may, if successful, provide a template for other struggling economies around the world to follow.
To read the article in full, please click here and turn to page 28.