Paul Roe - Infrastructure Australia - Capital Recycling, infrastructure funding and finance challenges

818 views

Published on

Paul Roe delivered the presentation at the 2014 Future of Infrastructure Conference.

The Future of Infrastructure forum explored state and national challenges which impact the long term economic growth and future of infrastructure development in Australia at this time. It also addressed the latest proposals for changes within Australia's infrastructure.

For more information about the event, please visit: http://bit.ly/FutureofInfrastructure2014

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
818
On SlideShare
0
From Embeds
0
Number of Embeds
7
Actions
Shares
0
Downloads
14
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Paul Roe - Infrastructure Australia - Capital Recycling, infrastructure funding and finance challenges

  1. 1. Infrastructure Australia Infrastructure Funding and Financing Challenges and Solutions Paul Roe Director Financing and Funding Policy
  2. 2. Presentation Outline  Infrastructure Australia Overview  Infrastructure funding and financing challenges  Infrastructure funding and financing solutions 2
  3. 3. Role of Infrastructure Australia 3  Adviser to Australian and State Governments and infrastructure owners on reform & investment  Prioritise projects seeking Australian Government financial support  Promote domestic and offshore private investment in infrastructure  Designate projects for access to infrastructure tax incentive  National PPP Policy & Guidelines
  4. 4. IA Policy Reports 4
  5. 5. Infrastructure Australia Amendment Bill 5  Main changes: - abolish position of Infrastructure Coordinator and abolish Infrastructure Australia Council - replace with Infrastructure Australia Board and CEO - establish IA as an independent statutory authority - conduct National and Northern Australia infrastructure audits - develop 15-year infrastructure plan - review all projects where Australian Government contributes > $100m - social as well as economic infrastructure - provide advice on delivery of infrastructure projects
  6. 6. Infrastructure Funding and Financing Challenges 6  Infrastructure funding pressures;  Fiscal constraints;  Importance of good project selection; and  Alternative funding and financing sources.
  7. 7. 7
  8. 8. 1 2 3 4 5 6 7 Goal Definition Problem Identification Problem Assessment Problem Analysis Option Generation Solution assessment Solution Prioritisation The 7-step framework
  9. 9. 10
  10. 10. Reform  Demand-side solutions 11 e.g. congestion pricing e.g. working hours
  11. 11. Reform  Supply-side solution e.g. National Managed Motorways 12 Build and non-build solutions
  12. 12. 13
  13. 13. IA CBA template Benefit Cost Analysis Result Complete the following table: Real Discount Rate (%) 4% 7% 10% BCR .... .... .... NPV ($m, 2013) i.e. ‘Net Benefit’ .... .... .... NPV / $ .... .... .... IRR .... .... .... 14
  14. 14. 15
  15. 15. 16
  16. 16. Difference between Proceeds on Transfer and Retention Value 17 A$m Transfer Proceeds (Equity Value) Dividend Retention Equity Valuation Difference Difference as % of Transfer Ports 6,704 1,015 5,689 85% Electricity Generation 13,426 5,064 8,362 62% Electricity Transmission and Dist 31,880 10,015 21,865 69% Water 37,544 12,082 25,462 68% Other (Forestry and Freight Rail) 2,403 155 2,248 94% Total 92bn 28bn 64bn 69% Source: Infrastructure Australia, Australia's Public Infrastructure—Update Paper—Balance Sheet Impacts of Sell To Build, December 2013
  17. 17. Asset Recycling Initiative 18  Establishment of a $5 billion fund  15 per cent of the assessed value of the proposed asset being sold for capital recycling  bilateral transactions agreed trough until 30 June 2016  incentive payments to States and Territories to 30 June 2019.
  18. 18. Infrastructure Australia Infrastructure Funding and Financing Challenges and Solutions Paul Roe Director Financing and Funding Policy

×