Over the last decade, much has been written about globalisation and how we’re more connected than ever before. In the infrastructure world, we think of connectivity as the “linkages of communities, economies and nations through transport, communications, energy, and water networks across a number of countries” .
The third meeting of the G20 Infrastructure Working Group (IWG) was held in Sydney, Australia from the 4th to the 6th of June, with the GI Hub playing an active role.
This year, the Global Infrastructure Hub (GI Hub) again attended the Annual Meetings of the World Bank and IMF, held in Bali, Indonesia, alongside the meetings of G20 Finance Ministers and Central Bank Governors. Trade tensions dominated many of the multilateral meetings, with all sides calling for a workable solution to be found. The leaders and representatives of smaller nations among the G20 and the IMF and World Bank community were pointed in their remarks that escalation of tensions between major economic powers was already having exponentially greater impacts on smaller economies.
As outlined earlier in this blog series, private investors are looking for reliable returns to justify the risks that they are taking. Financing and procurement of cross-border projects will often be more complex than national projects due to the scale of the project and compounded risks, and the financial returns may be more uncertain than for national projects.
Risks can be hard to define, manage and mitigate. In infrastructure projects that cross regional or national borders and involve multiple parties from both the public and private sector, these risks may be amplified.