In the third interview of our “Perspectives on Infrastructure” series, Adam Gordon of Investec considers the barriers to private investment in UK infrastructure and identifies the importance of private sector investment for infrastructure development.
Adam comments that the biggest barrier to investment in infrastructure development is a clear delivery process and that the government needs to develop a clear revenue framework and delivery model to encourage private investment.
It is clear that the private sector has appetite to invest in infrastructure assets and this should drive the development of new assets. However without a clear policy, investment risk is difficult to calculate, and ultimately price. Adam's suggestion of setting out clear development milestones and objective assessment criteria in order to access revenue sources is sure to help unlock private sector investment.
“Private sector capital would multiply the resources for infrastructure development, so the government should develop a clear revenue framework and delivery model to encourage the private sector.”