Value capture: bypassing the infrastructure impasse? New Frontier bulletin
Australia is estimated to need at least $300 billion, and up to $700 billion, spent on infrastructure over the short to medium term if it is to maintain and improve its productivity and liveability. However, short-termism and budgetary pressures mean governments are often unwilling to directly fund infrastructure even when it can deliver enormous value over the longer term. Opposition to user pays pricing, raising taxes or increasing debt mean more sophisticated ways of funding infrastructure need to be considered. Value capture mechanisms (VCM) are currently being explored by Infrastructure Victoria and represent a key component of the latest proposal for high speed rail linking Sydney and Melbourne. This latest bulletin from Frontier (Asia-Pacific) explores the benefits, costs and challenges associated with implementing value capture mechanisms.
Frontier regularly advises clients across various infrastructure sectors, including energy, transport and water.