Prior to the financial crisis, Australia enjoyed a decade of promising infrastructure projects. Privatizations of the country’s four major airports, along with extensive highway construction, were infrastructure successes.
But – tempered by construction difficulties, overambitious project forecasting, and highly aggressive financial structures – Australia suffered multiple high-profile defaults. Coupled with the financial crisis, the country’s infrastructure project pipeline came to a standstill.
In an article for Brink Asia, Mar Beltran, S&P Global Ratings’ senior director and infrastructure sector lead, EMEA, describes Australia’s infrastructure turnaround. By employing alternative financing tools, the State of New South Wales (NSW), in particular, has overcome many of the legacy issues that were negatively affecting its infrastructure development.
Beltran says: “NSW’s infrastructure story can provide lessons to other markets: alternative financing models are available and can help to bring market confidence to institutional investors, who will be encouraged to see a strong project pipeline across the sector.”
Read the article here.