The BCA has lodged a submission to the Infrastructure Finance Working Group, an advisory body established to provide advice to Infrastructure Australia on infrastructure finance policy issues.
The submission argues the availability of private finance for infrastructure investment is largely driven by the volume of attractive infrastructure projects in which to invest and the balance of risks and rewards for investors delivering large capital projects in Australia relative to other countries.
A priority for the working group should be to examine how governments can best bring forward their priority infrastructure projects for implementation. This includes how funding models between the Commonwealth and state governments and the private sector can best be structured to attract investment.
In the longer term, while options for facilitating private investment through more effective capital markets and new financial instruments are worth further exploration, proper project planning and implementation must still be addressed. This will assure market participants of a regular flow of quality investment opportunities. The implementation of regulatory and pricing reforms can also create the conditions for more market-based private investment in infrastructure.