Country for PR: China
Contributor: PR Newswire Asia (China)
Thursday, October 13 2022 - 08:00
AsiaNet
Tumbling investment in middle-and low-income countries, global stagnation, and an abundance of dry powder: The state of private investment in infrastructure
SYDNEY, Oct. 13, 2022 /PRNewswire-AsiaNet/ --

-A divide: In 2021, 80% of private investment in infrastructure projects 
occurred in high-income countries.
-Resilient performance: Rising inflation and interest rates affected 
infrastructure less than other asset classes.
-Green lining: In 2021 60% of private investment in infrastructure projects was 
green.

Private investment in infrastructure projects is tumbling in middle-and 
low-income countries where investment is needed most, according to a new report 
now published by the Global Infrastructure Hub (https://bit.ly/3RMFu3F) (GI 
Hub). While investment grew by 8.3% in high-income countries in 2021, it fell 
for a third year in middle- and low-income countries, by 8.8%.

At the same time, the Infrastructure Monitor 2022 report 
(https://bit.ly/3rNEUbi) shows overall private investment in infrastructure 
projects is stagnant for the eighth year running, despite recovering to 
pre-pandemic levels. As we saw from the COVID-19 pandemic, lack of investment 
in sufficient, resilient infrastructure leaves people everywhere vulnerable – 
to inadequate health care, increased unemployment, poverty, and other 
devastating effects.

The flatlining private investment is particularly notable alongside rising 
levels of dry powder and the strong performance of infrastructure investments.

"Dry powder - that is, available but uninvested private capital - has 
quadrupled since 2010, to USD298 billion," said GI Hub Chief Executive Officer 
Marie Lam-Frendo. "It is unacceptable that we aren't investing in badly needed 
infrastructure when we have the capital, and we know investments in 
infrastructure exhibit strong performance compared with investments in other 
asset classes."

The report finds a 'green lining' in unprecedented levels of green private 
investment, largely in the renewable energy sector. However, green investment 
outside renewables remains low and needs to grow to meet climate goals.

"We cannot afford to ignore either the infrastructure investment crisis or the 
climate crisis. Through public and private sector collaboration, we can work 
towards solving both," said Lam-Frendo. "The immediate and absolute priority 
for the infrastructure community is to join forces and activate a massive surge 
in investment."

Infrastructure Monitor 2022 provides governments and investors with data 
insights to target their investments for maximum impact. This is the third 
edition of the GI Hub's flagship report and covers trends in:

-Private investment in infrastructure projects
-Infrastructure investment performance
-Availability of private capital for infrastructure
-The role of multilateral development banks in private investment in 
infrastructure.

Source: Global Infrastructure Hub

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   Caption: Global Infrastructure Hub Chief Executive Officer Marie Lam-Frendo

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