How to Meet the Global Infrastructure Challenge in an Age of Austerity

Toronto (ots/PRNewswire) -

New KPMG report spotlights 100 world-class infrastructure projects
that balance solving problems of society today while preparing for
demands of the future

KPMG International's Infrastructure 100: World Markets Report
[http://www.kpmg.com/infrastructure100 ], highlights key trends
driving infrastructure investment around the world. A global panel of
industry experts identifies 100 of the world's most innovative,
impactful infrastructure projects showing how governments are coming
together with the private sector to overcome funding constraints to
finance and build projects that can improve quality of life - both
solving immediate needs and planning for future societal demands.

The report looks at infrastructure based on the dynamics of four
key markets: Mature International Markets (like Canada, Australia,
UK), Economic Powerhouses (including the US and BRIC countries),
Smaller Established Markets (like Chile, Sweden, New Zealand, Korea),
and Emerging Markets. The panel of independent industry experts
evaluated over 400 diverse and compelling projects to ultimately
select the final 100, based on:

Scale - How does the scale of the project relate to similar
developments in its class? Feasibility - Is the project plan feasible
and sustainable? Complexity - How challenging or complex is it to get
stakeholder support? Innovation - Is there a particular challenge the
project overcomes? Impact on society - Does it improve quality of
life or promote economic growth?

With a total estimated value of over US$1.73 trillion, the 100
projects illustrate a range of infrastructure investment, some with a
potentially transformative impact that could change the face of
nations. Many of the projects are designed to drive economic growth
by connecting people and resources to global and local markets (40%
of projects featured); others will help provide better access to
reliable power and clean water (30% of projects); while others are
focused on improving society through things like healthcare and
education.

Meeting the funding challenge However, the Infrastructure 100 also
bring to light affordability concerns and the need for governments to
make difficult choices about where to spend with funding in short
supply. Balancing the aspirations of a nation with the need for true
social benefit is not an easy challenge.

"Each country has its own approach to developing and funding
infrastructure, yet all share the universal challenge of creating the
right conditions to attract investment so desperately needed," says
James Stewart, KPMG's Chairman of Global Infrastructure. "Private
capital continues to play a critical role, but investors need
economic and political stability before committing. Consistency and
sustainability are the key, in setting policy, the right regulatory
environment and establishing a steady deal flow through project
pipelines."

Attracting private investment The report illustrates the critical
role of private investment in meeting the infrastructure challenge,
with different investment dynamics in each market category:

Economic powerhouses - have significant infrastructure needs -
either to support rapid growth and urbanization or to rebuild, repair
or upgrade aging assets. "The panel of industry experts identified a
surprisingly high reliance on public sector debt sources," said
Stewart.

Emerging markets - represent a frontier for private finance in
infrastructure, although a lack of funds, inadequate planning, and
unstable political environments have limited the availability of
projects that could attract private money.

Mature international markets - A combination of privatization,
regulation and a wide range of investors has heightened competition
for infrastructure in these markets. An increasing trend for asset
sales or privatizations is identified in the report.

Smaller established markets - tend to favor domestic financing,
with international financiers restricted by the lack of major
projects, competitive local capital and currency risk. However,
KPMG's report notes an increasing need for these markets to consider
collaborative, cross-border infrastructure projects that deliver
regional economic growth and bring the scale of major projects that
international investors are seeking.

Building for the future The Infrastructure 100: World Markets
Report [http://www.kpmg.com/infrastructure100 ] strikes a note of
caution over the limited supply of specialist talent that poses a big
threat to the momentum of infrastructure development. It also touches
on new technology and questions when it will have a meaningful impact
on the infrastructure industry in the same way it has transformed
other sectors. However, the report also acknowledges the continued
ability of the sector to innovate, with trends such as capital
recycling and asset management helping to make better use of budgets
and generate vital funds for further investment.

"Ultimately, we see a better world supported by infrastructure
projects that are desperately needed, those that are opportunistic,
and others that are truly visionary," said Stewart.

About the Infrastructure 100: World Markets Report This report is
the result of in-depth discussions by a distinguished panel of
independent industry experts from around the world. It looks at
infrastructure in four key markets: mature International markets;
economic powerhouses; smaller established markets; and emerging
markets. The independent judging panels assessed hundreds of project
submissions based on feasibility, social impact, technical and/or
financial complexity, innovation and impact on society to ultimately
select the final 100.

*View a complete list of the 100 projects online at:
http://www.kpmg.com/infrastructure100

About KPMG's Global Infrastructure Practice For more information,
visit http://www.kpmg.com/infrastructure

About KPMG International For more information, visit
http://www.kpmg.com

Laura Jablonski, Head of Marketing & Communications, Global
Infrastructure, +1(416)777-8849, ljablonski@kpmg.ca; Kent Miller,
Global Communications, +1(908)313-5037, ktmiller@kpmg.com

ots Originaltext: KPMG International LLP
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