Super funds already invest in infrastructure but there are barriers to them investing in new projects.
Privatisation of existing Government assets would be an easier method of investing for them, with risk reduced.
So to invest at the development or construction phase of new projects there have been some barriers identified:
• Lack of a clear pipeline and government commitment
• Lack of suitably structured projects
• Inconsistent, complex and expensive bidding processes
• Regulatory and industry pressures
The proposed solutions to reduce those barriers have been nominated as:
• Developing a committed pipeline
• Delivering certainty over government funding commitment
• Appropriately structuring projects
• Increasing the recycling of capital
• Simplifying transaction processes
• Creating consistency and certainty of government regulation
• Improving taxation system efficiency
Super and pension funds seem to like investing in assets that enjoy a long term stable income.
e.g. Overseas funds buy our toll roads, as do Australian super funds.
