The Global Infrastructure Hub (GI Hub), a structure put in place in November 2014 to help unlock $2 trillion in infrastructure investment, has launched a Global Knowledge network aimed at helping countries deliver projects using the PPP model.
The announcement was made at a conference held last week in Shanghai and hosted by GI Hub, which operates under G20 supervision. The initiative aims to go some way towards meeting the $50-$60 trillion the OECD and McKinsey say is required in infrastructure investment.
“Governments needs to ensure they are viewing infrastructure as a crucial input into strong, sustainable, long-term growth,” Australia’s secretary of the treasury and GI Hub chairman John Fraser said during the Shanghai event, addressing business leaders and public sector officials.
Establishing a global knowledge network is seen as the first step towards implementing reforms and improving regulatory frameworks to help build public confidence and momentum behind innovative infrastructure financing solutions.
“The role of the private sector in driving innovation in infrastructure markets often draws attention, however government innovation also plays a strong role,” GI Hub chief executive Chris Heathcote said. “By developing the Global Infrastructure Hub as a resource for sharing best practice and helping build the community of government officials with responsibility for infrastructure, we will be able to play an important role in driving the next generation of innovations.”
Based in Sydney, GI Hub operates as an independent non-profit company under Australian law. It is funded by Australia, which has committed to providing $30 million over a five-year period, as well as the UK, China, Saudi Arabia, New Zealand, Korea, Mexico and Singapore. These have also committed to contributing a total of about $20 million.
The organisation works in formal partnership with the OECD, the World Bank Group and other development banks. Its business plan, in addition to being approved by the board, was also endorsed by G20 finance ministers and central bank governors in 2015, according to GI Hub’s website.