Bridging the infrastructure gap: political, managerial and financial challenges

The need for infrastructure investment around the globe is climbing, both in emerging markets and the developed world. This need for infrastructure investment comes in the wake of the financial crisis that has severely constrained public budgets in many countries. The result: a staggering gap of approximately $1 to $1.5 trillion annually between demand and investment in infrastructure. In this context, Public-private partnerships (PPPs) seems to be the way to close infrastructure gap. In order to attract funds in the infrastructure market and to close the gaps that hamper the development of this sector as an asset class, macro (at policy level) and micro (at project level) actions are urgently required. At policy level, it is required to create a suitable ecosystem and at project level a managerial flow should make the project cycle efficient and effective.