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.
.