WASHINGTON, DC and LONDON, Feb 03, 2012 (MARKETWIRE via COMTEX) --
-- By 2015, global investment in infrastructure is expected to reach only
$4.5 trillion -- well below the level required to meet global demand.
This investment gap represents both great opportunity and critical
concern.
-- 2015 Infrastructure Report to be released at 5th Annual Global
Infrastructure Leadership Forum in London this month, with projects
worth over US$700 billion being presented
-- Transformational projects from Africa, Latin America, Canada, the US,
Asia, the Middle East and Europe to be presented -- largest single
project is Canada's Plan Nord
At a point in which the global economy is balancing between growth and
a return to recession, CG/LA Infrastructure’s annual estimate shows
that global infrastructure investment is falling short of its target
by 10-20%.
In its Annual Report on Global Infrastructure entitled “The Global
Infrastructure Marketplace: The World in 2015,” CG/LA forecasts that
global demand for infrastructure projects will reach nearly $10
trillion in the period from now until 2015, while investment will
fall considerably short of that figure, reaching only $4.5 – $5
trillion.
“The critical fact is that we are not acting; instead, we are
sleeping at a time of maximum danger and significant opportunity,”
said CG/LA Infrastructure President and CEO Norman F. Anderson. “The
world needs to invest — and this is not just an obligation to the
next generation, but a way to ensure growth now, and what might be
even more important, to widen the creation of opportunities in
economies around the world. Policymakers seem exhausted after three
years of crisis, but this is when they need to be most active, most
creative, and most resourceful.”
The report highlights the role that infrastructure projects such as
roads, bridges, mass transit and ports must play in generating growth
and opportunity. It details infrastructure demand and spending in 80
countries over the past 20 years and projects the rate of investment
through 2015 under three different GDP growth scenarios.
Key findings include:
-- Infrastructure clusters are emerging in countries and regions around
the world, including China (which is set to be the largest
infrastructure market in the world), but also in Brazil, Canada and
Australia. Among the BRIC's, India and Russian are falling behind.
-- Investment is greatest among commodity producers. Areas of greatest
activity tend to be found in region -- producing or receiving -- that
are involved in the global commodity boom, so Brazil, China, parts of
Latin America, Africa and especially the Middle East have booming
infrastructure sectors.
-- Key Sectors Continue to Lag. While investment in electricity and
highways will account for 65 percent of investments in infrastructure,
water distribution and wastewater treatment will receive less than 9
percent of total investments. Urban mass transit will also lag
significantly.
-- Investment in Infrastructure Projects in the U.S. is Declining.
Currently, investments in U.S. projects make up 11 percent of the
global infrastructure market, but rather than increasing with economic
recovery investments are declining.
-- Africa is Emerging as an Infrastructure Hot Spot. Countries like South
Africa, Nigeria, Kenya and others are preparing for significant
infrastructure investments -- investors see Africa as 'where Latin
America was 20 years ago.'
“What you see is not simply lower than required investment, but an
overall lack of public imagination in terms of long-term
infrastructure investment priorities. This issue is most significant
in emerging markets — and it is not sustainable,” Anderson added.
CG/LA will release the report as part of a breakfast discussion on
the future and growth of infrastructure projects at its 5th Annual
Global Infrastructure Leadership Forum in London from February 22-24.
The panel will include Enrique Garcia, Chairman of CAF – Development
Bank for Latin America; Terry Newendorp, Chairman and CEO at
Taylor-DeJong; Huw Thomas, partner at Foster + Partners; and, Lixing
Zou, Vice President at the China Development Bank.
About the Global Infrastructure Leadership Forum
Now in its fifth
year, the Global Infrastructure Leadership Forum hosts the top global
infrastructure projects and brings together professionals interested
in global infrastructure, including individuals in engineering,
construction, technology, public policy and finance.
For more information please visit
http://www.cg-la.com/ .
Contacts:
Craig Guzinsky
Washington, DC
(202) 776-0990
Email Contact
SOURCE: CG/LA Infrastructure
http://www2.marketwire.com/mw/emailprcntct?id=2BA817B3FC2AEC09
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