A Global Infrastructure Hub is being set up in Sydney under the G20 umbrella to help increase global investment in infrastructure.
Demand for infrastructure investment over the next decade will outstrip the funding capacity of governments alone so private sector involvement is critical.
According to the B20, the business leader sub group of the G20, the Hub could help unlock an additional $2 trillion in global infrastructure capacity to 2030.
The hub will facilitate better information sharing and collaboration between the private sector, governments, development banks and international organisations on infrastructure investment.
With a four year mandate, the Hub will work internationally to help countries improve their general investment climates, reduce barriers to investment, grow their project pipelines and help match investors with projects.
In a joint statement, Prime Minister Tony Abbott and Treasurer Joe Hokey sat the initiative will help improve how infrastructure markets work.
Australian will be a major contributor to the Hub with other contributions coming from G20 members, non-member countries, international organisations, non-government stakeholders and the private sector.
Establishing the Global Infrastructure Hub is a significant and practical initiative by the G20 to drive faster progress on its infrastructure agenda and move engagement with the private sector beyond business as usual.
“Under Australia’s G20 Presidency, our focus has been on economic growth and job creation,” says the joint statement.
“Quality infrastructure is fundamental to economic growth across the globe.
“Investment in infrastructure drives economic activity and creates new jobs.”
Multilateral development banks, the IMF and the OECD have all indicated they stand ready to bring their experiences and skills to the G20’s work on infrastructure and to support the Hub.
And financial commitments have already been made by the United Kingdom, China, Saudi Arabia, New Zealand, the Republic of Korea, Mexico and Singapore.