Infrastructure in Australia - April 2015

Mergermarket

Description

Encouraging private investment and looking to the future All of the roadblocks identified above can be overcome but it will take time and a commitment from Government to invest in the necessary resources to ensure that a long term sustainable plan is adopted with respect to closing the infrastructure gap in Australia. A plan that looks beyond the next election cycle. Notwithstanding the recent cancellations of projects in Queensland, Victoria and South Australia, Australia is likely to remain an attractive option for infrastructure investors in the region. There may be an increased level of focus on the termination and termination compensation provisions under the concession agreements for any new PPP projects that come to market, and perhaps a heavier burden assumed by advisors (particularly when acting for international financiers and sponsors) in explaining the legislative framework which governs the rights and obligations of Government and the private sector in a default / termination scenario, but the investment tap is unlikely to be turned off. The establishment of Infrastructure Australia, and similar State / Territory Government departments associated with infrastructure delivery will no doubt continue to facilitate an increased level of sophistication and transparency when procuring infrastructure projects using a PPP delivery model. And the voting public will ultimately demand it, particularly if there is no alternative plan that is proposed by Government to reduce debt and stimulate economic efficiency. Post-GFC much of the investment environment is about mitigating risk – infrastructure more than most. Ensuring that the public-private models used are balanced when it comes to risks and potential gains is essential to providing long-term solutions to Australian infrastructure demand. Contact us: Scott Bache Partner +61 2 8922 8077 scott.bache@cliffordchance.com Richard Graham Partner +61 2 8922 8017 richard.graham@cliffordchance.com Nadia Kalic Counsel +61 2 8922 8095 nadia.kalic@cliffordchance.com John Park Senior Managing Director +61 7 3225 4900 john.park@fticonsulting.com Quentin Olde Senior Managing Director + 61 2 9247 8017 quentin.olde@fticonsulting.com John Corbett Special Advisor john.corbett@fticonsulting.com John Batchelor Senior Managing Director + 852 3768 4500 john.batchelor@fticonsulting.com Mark Chadwick Senior Managing Director +65 6831 7824 mark.chadwick@fticonsulting.com Disclaimer The information contained herein is based on currently available sources and should be understood to be information of a general nature only. The information is not intended to be taken as advice with respect to any individual situation and cannot be relied upon as such.

This document is owned by Clifford Chance, FTI Consulting, and The Mergermarket Group, and its contents or any portion thereof, may not be copied or reproduced in any form without permission of Clifford Chance, FTI Consulting, or The Mergermarket Group. Clients may distribute for their own internal purposes only. All deal details and M&A figures quoted are proprietary Mergermarket data unless otherwise stated. M&A figures may include deals that fall outside Mergermarket’s official inclusion criteria.

All $ symbols refer to US dollar. .
More Presentations By Mergermarket +
Financing Presentations +
Mergermarket

< 300 characters or less

Sign up to contact