Writing for the Financial Times’ Pensions Expert, Michael Wilkins, Managing Director of Infrastructure Finance at Standard & Poor’s, argues that while Europe needs more infrastructure, austerity means the public sector cannot meet the demand for the necessary investment – indeed, the UK alone posts a current deficit of about £60 billion.
Wilkins explains that the private sector, however, is well placed to step up to the mark. With the backing of public initiatives – such as the European Commission’s ‘Juncker Plan’, the European Investment Advisory Hub, and the UK’s National Infrastructure Commission – investors can now take advantage of the ripening project finance market. He stresses that choosing the right projects, with system-wide benefits, will be key in realising the full potential of such investment. This relies on a clear overview of the risk factors learnt from lessons past – all of which are outlined in the article.
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