Despite the great need to build and maintain infrastructure to stimulate economic growth, governments in the EU, on the whole, are shying away from providing the necessary funding – mainly due to the high risks and high costs involved. This was the conclusion of Michael Wilkins, Managing Director of Infrastructure Finance at Standard & Poor’s, in February’s edition of Partnership Bulletin.
In his article, Wilkins refers to a recent S&P survey that found that, overall, industry experts and policymakers view the combination of austerity policies and issues of affordability as the main barriers to infrastructure investment in Europe.
The solution, therefore, could lie in public-private partnerships (PPPs), Wilkins argues. By teaming up public-sector infrastructure requirements with private-sector financiers seeking high yield projects, particularly in the sale of brownfield (existing) assets, the right financing could be realised.
To view the full article, please click here. (Please note: this article lies behind a paywall)