SOURCE: CG/LA Infrastructure

CG/LA Infrastructure

February 03, 2012 08:00 ET

Infrastructure Project Investment Key to Recovery Falling Short Globally

2015 Infrastructure Report to Be Released at Gathering of the Top 100 Global Infrastructure Projects at the 5th Annual Global Infrastructure Leadership Forum

WASHINGTON, DC and LONDON--(Marketwire - Feb 3, 2012) -

  • By 2015, global investment in infrastructure is expected to reach only $4.5 trillion -- well below the level required to meet global demand. This investment gap represents both great opportunity and critical concern.
  • 2015 Infrastructure Report to be released at 5th Annual Global Infrastructure Leadership Forum in London this month, with projects worth over US$700 billion being presented
  • Transformational projects from Africa, Latin America, Canada, the US, Asia, the Middle East and Europe to be presented -- largest single project is Canada's Plan Nord

At a point in which the global economy is balancing between growth and a return to recession, CG/LA Infrastructure's annual estimate shows that global infrastructure investment is falling short of its target by 10-20%.

In its Annual Report on Global Infrastructure entitled "The Global Infrastructure Marketplace: The World in 2015," CG/LA forecasts that global demand for infrastructure projects will reach nearly $10 trillion in the period from now until 2015, while investment will fall considerably short of that figure, reaching only $4.5 - $5 trillion.

"The critical fact is that we are not acting; instead, we are sleeping at a time of maximum danger and significant opportunity," said CG/LA Infrastructure President and CEO Norman F. Anderson. "The world needs to invest -- and this is not just an obligation to the next generation, but a way to ensure growth now, and what might be even more important, to widen the creation of opportunities in economies around the world. Policymakers seem exhausted after three years of crisis, but this is when they need to be most active, most creative, and most resourceful."

The report highlights the role that infrastructure projects such as roads, bridges, mass transit and ports must play in generating growth and opportunity. It details infrastructure demand and spending in 80 countries over the past 20 years and projects the rate of investment through 2015 under three different GDP growth scenarios.

Key findings include:

  • Infrastructure clusters are emerging in countries and regions around the world, including China (which is set to be the largest infrastructure market in the world), but also in Brazil, Canada and Australia. Among the BRIC's, India and Russian are falling behind.

  • Investment is greatest among commodity producers. Areas of greatest activity tend to be found in region -- producing or receiving -- that are involved in the global commodity boom, so Brazil, China, parts of Latin America, Africa and especially the Middle East have booming infrastructure sectors.

  • Key Sectors Continue to Lag. While investment in electricity and highways will account for 65 percent of investments in infrastructure, water distribution and wastewater treatment will receive less than 9 percent of total investments. Urban mass transit will also lag significantly.

  • Investment in Infrastructure Projects in the U.S. is Declining. Currently, investments in U.S. projects make up 11 percent of the global infrastructure market, but rather than increasing with economic recovery investments are declining.

  • Africa is Emerging as an Infrastructure Hot Spot. Countries like South Africa, Nigeria, Kenya and others are preparing for significant infrastructure investments -- investors see Africa as 'where Latin America was 20 years ago.'

"What you see is not simply lower than required investment, but an overall lack of public imagination in terms of long-term infrastructure investment priorities. This issue is most significant in emerging markets -- and it is not sustainable," Anderson added.

CG/LA will release the report as part of a breakfast discussion on the future and growth of infrastructure projects at its 5th Annual Global Infrastructure Leadership Forum in London from February 22-24. The panel will include Enrique Garcia, Chairman of CAF - Development Bank for Latin America; Terry Newendorp, Chairman and CEO at Taylor-DeJong; Huw Thomas, partner at Foster + Partners; and, Lixing Zou, Vice President at the China Development Bank.

About the Global Infrastructure Leadership Forum
Now in its fifth year, the Global Infrastructure Leadership Forum hosts the top global infrastructure projects and brings together professionals interested in global infrastructure, including individuals in engineering, construction, technology, public policy and finance.

For more information please visit http://www.cg-la.com/.

Contact Information

  • Contacts:

    Craig Guzinsky
    Washington, DC
    (202) 776-0990
    Email Contact