All levels of government across Australia acknowledge that the backlog of infrastructure, both economic and social, cannot be satisfied without private sector participation.
That is the simple part. But how to deliver this backlog is more complicated given policy directives, budget constraints and process. The 'how?' is usually the responsibility of government and its agencies but the private sector needs to be 'taken along' too.
Private sector integration into public capital development, often referred to as "Public Private Partnerships" (PPP), has been widely used as a method for public infrastructure delivery both locally and internationally, however the wider adoption of PPPs for smaller scale social infrastructure procurement remains limited.
Urbis has seen astounding results in the broader infrastructure sector even where process, funding and commitment are "certain". The sector has its challenges in terms of confidence in the process. We believe that with a truly co-operative approach, tailored frameworks and sensible risk sharing the challenges can be overcome, even in smaller scale projects.
By Damien House, Director, Urbis.
Published in Urbis Insights - Infrastructure Edition on 1 September 2015.