As highlighted in the home page of the site, a broad consensus exists today among all the industry participants about the growing infrastructure gap that exists in the world despite all the recent huge investments. This gap exists naturally in the developing countries but it is surprisingly increasing in some of the most developed countries in the world. In the USA, Italy or Germany, for example, infrastructure is being worn out faster than it’s being refurbished. As a consequence, the infrastructure debt is rising all over the world : the American Society Of Civil Engineers estimates in its infrastructure report card the cost of improving the USA infrastructure to $3.3 trillion and the last McKinsey report states that the world needs more than $ 1 trillion of additional infrastructure investments just to meet the expected growth through 2030.
Unfortunately, while the world needs urgent solutions to bridge this gap and support the fast growth of the developing countries, the public budgets are increasingly under pressure. Thus, the solution today lies rather in the private sector hands through Public-Private partnership initiatives. Hence, with more than $100 trillion private savings worldwide , project finance is about finding an effective way to channel efficiently these savings to finance infrastructure projects.
This private infrastructure potential remain, however, locked by a least three problems : First, the lack of professionals with expertise and know-how in project delivery, project management and project financing. Second, the inadequate legal framework in some countries and poor public governance of the PPP initiatives. Third, the political risk that still prevents a lot of professionals from investing in many countries.
FINEXIA aims at contributing to unlocking some of this investment potential by providing top-grade worldwide consultancy services, training and financial modeling services with a team of highly skilled independent professionals.
Infrastructure is a key factor :
Especially in the poorest countries, the access to power, water , waste management facilities and safe roads are the most urgent issues to unlock the development potential, preserve the population health and combat poverty.
All economists agree on the fact that the quality of infrastructure is a key contributor to the economic competitiveness. Moreover, infrastructure investments have a high impact on the national wealth as it has been demonstrated to have a multiplier effect on national GDP. Natixis finds that 1 euros invested in transport infrastructure in France, Germany, Italy or Spain raises national GDP by more than 14 times the investments value. Standards & Poors finds that the infrastructure investment increases the UK GPP by almost two times their value over three years.
To address the climate change challenge, all the countries have to engage urgently an Energy transition from fossil fuels to renewable energies. This requires huge investments in new solar farms, wind farms or water power stations. For example, in order to achieve the European Commission’s climate and energy targets by 2030, the European Union needs to invest over €200 billion per year in the energy sector.