One of the main initiatives of the G20 IWG in 2020 has been the creation of a sustained policy dialogue between asset owners and managers and governments in order to identify the key challenges facing the private-sector, including regulatory aspects as well as broader impediments to investment in infrastructure, and to develop actionable recommendations for governments .
The dialogue with investors, supported by the OECD & G20, has been shaped through a series of meetings and conference calls orchestrated over several months. LTIIA has been closely involved since the beginning in this process on behalf of, and along its members, most recently at the OECD “Asset manager and institutional investor dialogue on private investment in infrastructure (held in February and May 2020) “ .
LTIIA has been participating actively to the latest round of exchanges between OECD and the community of institutional investors in infrastructure. The latest report, made available in May, is based on feedback from over 70 investors based in 24 countries. It will be presented to G20 Finance Ministers and Central Bank Governors for their consideration in July 2020. Going forward, the possibility of establishing a G20/OECD platform for further engaging with private sector investors, is considered.
Among the key points highlighted in the report by the OECD & the G20 Saudi Presidency were:
- the importance to focus on the economic recovery in which infrastructure plays a key enabling role,
- the sizeable level of investment gap in infrastructure particularly in public sector (eg health and social infra) whose debt levels are increasing as a result of the crisis,
- the importance to attract private investors with appropriate risk-sharing and risk-mitigation instruments,
- the need to focus on asset owners and provide the right incentives for investment in long-term assets, to foster infrastructure as an asset class, etc…,
- the need to focus on quality and long-term sustainability of the infrastructure investments.
The OECD also highlighted the long-term Covid19 implications:
- recognition of the critical role of social infra in our societies,
- need to ensure future infra preparedness,
- further increase of the importance of digital infra.
Click here to access the draft report “G20/OECD Report on the Collaboration with Institutional Investors & Asset Managers on Infrastructure: Investor Proposals and the Way Forward” on our website.