Case study: Global Infrastructure Hub to deliver practical outcomes
On 16 November 2014, G20 leaders agreed to establish a Global Infrastructure Hub in Sydney to help implement the G20 multi-year infrastructure initiative designed to support public and private investment in quality infrastructure and take a global perspective to infrastructure investment.
The Hub has been registered as a company under Australian law and directors appointed from Australia, China, the Republic of Korea, Turkey and the United Kingdom to represent the G20 on the Hub’s Board, chaired by the Secretary to the Treasury, Mr John Fraser. Mr Chris Heathcote has been appointed CEO.
The Hub will function as a knowledge-sharing organisation to accelerate financing and developing infrastructure projects. It will work internationally to leverage greater private sector involvement in infrastructure through information development, knowledge sharing, training and implementing leading practices.
Both G20 and non-G20 countries and relevant international organisations will be able to engage with the Hub’s activities. It will work in close collaboration with governments, the private sector, national, regional and multilateral development banks, international organisations and other major stakeholders.
Australia has signed memoranda of understanding with the World Bank and the Organisation for Economic Co-operation and Development who will collaborate with the Hub.
The Australian Government will contribute $30 million to establish and operate the Hub until 2018 and seven countries have already committed funding to the Hub: China, Mexico, New Zealand, the Republic of Korea, Saudi Arabia, Singapore and the United Kingdom.
Other governments, international organisations, development banks and the private sector may contribute additional financial and in-kind resources.
Building infrastructure drives growth in the short-term through investment and employment, and makes economies more productive in the long-term. Demand for infrastructure investment over the next decade will outstrip the funding capacity of governments alone so private sector involvement is critical. The Hub could help unlock an additional $2 trillion in global infrastructure capacity to 2030.