Staying on track: how to fund infrastructure projects as governments borrowing costs rise
In the face of challenges ranging from climate change to connectivity, many governments around the world are increasing their investment in infrastructure. Clean energy for households and businesses, green transport and digital networks all require state support to get to net zero and help ‘build back better’ from the coronavirus pandemic.
But, after a decade or more of low interest rates on government debt, borrowing costs are beginning to rise. High inflation has led to an increase in interest rates by the central banks in a number of countries, pushing up the cost of borrowing for government.
This has led to a renewed push in some countries to look afresh at other means to fund large projects. The World Bank has produced guidance on the use of public-private partnerships in infrastructure post-COVID, while in the UK, this has meant looking at how pension funds can be encouraged to invest in projects.
This webinar looked at what governments should consider when looking at alternative means to finance infrastructure projects. It examined the factors that government should consider when examining options, and best practice in unlocking investment.
This webinar covered:
- How governments can unlock investment in different sectors.
- The benefits and challenges of raising investment from different sources.
- How governments can make projects more investible to pension funds and other finance providers.
Panel
Alexandre Araujo Carneiro, Department of Development and Development of Infrastructure, Ministry of Infrastructure, Brazil
Alexandre Carneiro is a financial expert with 6+ years of experience in leading positions at the Government of Brazil. Alexandre holds an MBA by COPPEAD Graduate School of Business and was an MBA Exchange Student at The Wharton Business School for a semester. Alexandre currently is the Director of the Department of Promotion at the Ministry of Infrastructure in Brazil, being responsible for privatizations and the financeability of PPP projects.
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Chris Creed, Senior Advisor, Loan Programs Office, Department of Energy, United States
Chris Creed joined the Department of Energy’s Loan Programs Office as a Senior Advisor in the summer of 2021. Chris is focused on assisting the department’s efforts to make available loans and loan guarantees to first-of-a-kind projects and other high-impact energy-related ventures, with particular emphasis on project and portfolio risk assessments and inter-agency communications.
Prior to joining the DoE, Chris was at Goldman Sachs where most recently he was a Managing Director and co-head of mortgage and securitized investments, managing over $75bn in assets across mutual funds and separate accounts at GSAM. Chris has spent more than two decades in the mortgage and securitized markets as both a portfolio manager and trader.
Chris graduated from Brown University with an Sc.B. in Applied Mathematics – Economics in 2000, and is the chair of the board of trustees of St. John’s High School in Shrewsbury, MA.
Ian Brown, Head of Banking and Investments, UK Infrastructure Bank
Ian Brown recently joined the newly created UK Infrastructure Bank as Head of Banking and Investments. He leads a team focussed on providing debt, equity and guarantees in support of UK infrastructure projects that have the potential to help the UK meet its net zero targets and/or stimulate economic growth.
Before joining UKIB, Ian set up the private markets investment platform at one of the UK’s pooled pension investment companies, having previously had a long career in investment and commercial banking.
Michael Flynn, Global Infrastructure, Transport and Regional Government Sector Leader, Deloitte
Michael is a Financial Advisory Partner and the Global Infrastructure, Transport & Regional Government Leader at Deloitte. In this role he leads the global team focused on public sector investment in Infrastructure, Transport & Mobility, Climate & Environment and Regional & Local Governments (including cities). Additionally, Michael is the Global Financial Advisory Government & Public Services Leader and the Infrastructure & Capital Projects EMEA Leader.
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Webinar chair: Siobhan Benita, former UK senior civil servant
Siobhan Benita was a senior civil servant with over 15 years’ Whitehall experience. She worked in many of the major delivery departments, including Transport, Environment, Health and Local Government. She also had senior roles at the heart of Government in the Cabinet Office and HM Treasury, including supporting the then Cabinet Secretary, Lord O’Donnell to lead work on Civil Service reform and strategy. Siobhan left the Civil Service to run as an independent candidate in the Mayor of London election. She subsequently joined her alma mater, Warwick University as Chief Strategy Officer of Warwick in London and Co-Director of the Warwick Policy Lab.
