A $15 billion-a-year global infrastructure hub, under discussion for several months, was agreed in principle at the G20’s business representatives’ meeting (B20) in Brisbane this weekend.
The platform will aim to unlock $2 trillion in global infrastructure capacity to 2030 by fostering collaboration between governments, the private sector, and international organisations. Its ambition is to help bridge the growing gap between government funding capacity and global demand for infrastructure through private sector investment.
Based in Sydney, it will have a four-year mandate to “help countries improve their general investment climates, reduce barriers to investment, grow their project pipelines and help match investors with projects,” according to a statement published by the G20 on Sunday.
The initiative calls for commitments from G20 members but is also open to non-member countries, international organisations, non-government stake-holders and the private sector.
The launch comes at a time of heightened global focus on infrastructure, following the recent launch of the World Bank’s Global Infrastructure Facility in October and China’s Beijing-based Asian Infrastructure Investment Bank earlier this month.
The United Kingdom, China, Saudi Arabia, New Zealand, Korea, Mexico and Singapore have already agreed to contribute to the costs of the hub. No projection of the funds needed to run the platform have yet been disclosed.
Eight multilateral institutions, Australian asset management firm IFM and the OECD have also proposed to contribute their experience and skills to the hub.