Post on 05-Dec-2014
description
Infrastructure Australia
Infrastructure Funding and Financing Challenges and Solutions
Paul Roe
Director Financing and Funding Policy
Presentation Outline
Infrastructure Australia Overview
Infrastructure funding and financing challenges
Infrastructure funding and financing solutions
2
Role of Infrastructure Australia
3
Adviser to Australian and State Governments and
infrastructure owners on reform & investment
Prioritise projects seeking Australian Government
financial support
Promote domestic and offshore private investment in
infrastructure
Designate projects for access to infrastructure tax
incentive
National PPP Policy & Guidelines
IA Policy Reports
4
Infrastructure Australia
Amendment Bill
5
Main changes:
- abolish position of Infrastructure Coordinator and abolish
Infrastructure Australia Council
- replace with Infrastructure Australia Board and CEO
- establish IA as an independent statutory authority
- conduct National and Northern Australia infrastructure audits
- develop 15-year infrastructure plan
- review all projects where Australian Government contributes >
$100m - social as well as economic infrastructure
- provide advice on delivery of infrastructure projects
s
Infrastructure Funding and Financing
Challenges
6
Infrastructure funding pressures;
Fiscal constraints;
Importance of good project selection; and
Alternative funding and financing sources.
7
1
2
3
4
5
6
7
Goal Definition
Problem Identification
Problem Assessment
Problem Analysis
Option Generation
Solution assessment
Solution Prioritisation
The 7-step framework
10
Reform
Demand-side solutions
11
e.g. congestion pricing e.g. working hours
Reform
Supply-side solution e.g. National Managed Motorways
12
Build and non-build
solutions
13
IA CBA template Benefit Cost Analysis Result
Complete the following table:
Real Discount Rate (%)
4% 7% 10%
BCR .... .... ....
NPV ($m, 2013)
i.e. ‘Net Benefit’
.... .... ....
NPV / $ .... .... ....
IRR .... .... ....
14
15
16
Difference between Proceeds on
Transfer and Retention Value
17
A$m Transfer Proceeds (Equity Value)
Dividend Retention
Equity Valuation
Difference Difference as % of
Transfer
Ports 6,704 1,015 5,689 85%
Electricity Generation 13,426 5,064 8,362 62%
Electricity Transmission and Dist
31,880 10,015 21,865 69%
Water 37,544 12,082 25,462 68%
Other (Forestry and Freight Rail)
2,403 155 2,248 94%
Total 92bn 28bn 64bn 69%
Source: Infrastructure Australia, Australia's Public Infrastructure—Update Paper—Balance Sheet Impacts of Sell To Build,
December 2013
Asset Recycling Initiative
18
Establishment of a $5 billion fund
15 per cent of the assessed value of the proposed asset
being sold for capital recycling
bilateral transactions agreed trough until 30 June 2016
incentive payments to States and Territories to 30 June
2019.
Infrastructure Australia
Infrastructure Funding and Financing Challenges and Solutions
Paul Roe
Director Financing and Funding Policy