Queensland faces a new wave of infrastructure construction worth more than $70 billion over the next decade, according to figures in the latest CEDA information paper on Queensland's economic development.
And to finance this investment wave and attract expertise to manage it, Queensland will need the best possible enabling environment, with an understanding of the private funds available, a world-class regulatory framework and transparent contracting and bidding processes.
These and other findings are contained in three papers in the second volume of CEDA's Sustainable Queensland project, a detailed examination of how the state can cope with the growth expected in the years ahead.
The report suggests the time may be right for Queensland to create more so-called "Public-Private Partnerships" (PPPs) using private sector finance. Globalising supply and demand for capital and other resources mean that Queensland agencies need to engage with international markets, it says.
"Queensland is in a competition with other governments in Australian and overseas for infrastructure expertise," says CEDA's Queensland executive director and deputy CEO, Greg Meek.
"There are huge gains to be made from best-practice management of our new wave of infrastructure projects. Queensland has an opportunity to learn from what has been done in the rest of Australia and all over the world."
"With the quantum of the planned short-term investment, it is critically important that we draw on the best relevant experience to give future generations world-class infrastructure."
The report shows Queensland faces a new wave of infrastructure-building stretching over at least 10 years and possibly more than 20 years. The report says the South East Queensland Infrastructure Plan and Program contains $33 billion of spending over the next 10 years and the state's Blueprint for Business another $36 billion over five years. On top of that is a share of $15 billion in planned federal AusLink road funding.
More than $10 billion of the finance needed for this new wave of infrastructure could come from the private sector. Australia has large pools of private funds to finance infrastructure, as well as a large supply of private expertise.
The extent of private sector involvement in infrastructure projects remains a much-debated question. Sustainable Queensland Volume 2 says that to choose between private and public construction, ownership and operation of infrastructure, governments must properly assess the infrastructure project's risks and assign them to the proper parties - governments, design and building contractors, project operators and private investors.
The Sustainable Queensland project is run by a Queensland CEDA committee chaired by Professor Ken Wiltshire of the University of Queensland Business School. CEDA's deputy CEO, Greg Meek, is the project director.
The first volume of Sustainable Queensland, released in March, found that Queensland would probably gain three million new people by 2051 and that the state would need new strategies to accommodate the new millions and to ensure they have good jobs.
For further information please contact:
John Harris
Corporate Relations Director
Phone 03 9652 8415
Email info@ceda.com.au
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