Sustainable Infrastructure and funding issues

Week 11 Lecture 12/10/16 by Anthong Sprigg (ISCA), Damien Smith (EY) and David Hong (EY)

Why Infrastructure needs to be sustainable? – Anthony Sprigg

What is unsustainable infrastructure?

  • stranded asset
    • financially – poor business case, social liscence, economic changes etc
    • physically – natural hazards (including climate change)
  • negatively impacting the majority to service the minority
  • direct and indirect environmental and social degredation
  • resists, retards and reversees liveable city and community objectives, outcomes and opportunities
  • ignoring system and network optimisation over short term project pipeline priorities; project focussed not solution focussed

Consider:

  • improved governance
  • valuing externalities
  • social and environmental return
  • advanced benefit cost and associated business cases
  • benchmarking best practice in business cases

 

Sustainable Infrastructure and funding issues – Damien Smith

demand factors vs supply factors

Demand:

  • population growth
  • rapid urbanisation
  • Ageing infrastructure
  • Congestion
  • Productivity growth

Supply:

  • urbanised corridors
  • land acquisition
  • limited contractor capacity
  • risks with greenfield projects
  • government fiscal constraints
  • vertical fiscal imbalance
  • cost of capital; value for money
  • debt market capacity

Infrastructure sustainability: Infrastruture planning needs to recognise that major projects shape cities through:

  • planning, delivery and operational decisions
  • social, environmental and economic impacts
  • short term wins versus long term outcomes
  • financial sustainability

Governance and decicion making are key to infrastructure sustainability

 

Meeting the Renewable Energy Target (RET) – David Hong (EY)

Renweable Energy Target set up Governement – 6,000 MW of new renewable capacity by 2020 (approximately 25% solar and 75% wind)

Currently, there are 9,000MW of large-scale renewable projects with DA’s

Key commercial participant:

  • financier
  • project sponser
  • retailer
  • end users
  • government

 

Further Resources

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