Doha Launch

20th April 2013

Economic growth dominates global policy agenda.

Infrastructure investment is regarded as the prime mover.

Global infrastructure expenditure to 2030

US$ 50 - 70 tn

Source: OECD, BC Consulting

1 x global GDP

As % of global GDP

• 6% over next 5 years

• Averaging 4% to 2030

An increase from an average of 3%

• USA 2.4% → China 9%

Estimated additional funding required over the next 5 years = US$ 1.4tn pa

Up to 50% in projects over US$ 500m

• circa 1500 new projects each year

Can this be funded? To preserve the credit to GDP ratio global

credit must double;

US$ 109tn 2010 → US$ 210tn2020

What capacity remains to fund an expanded infrastructure programme?

Global Institutional funds = US$ 65tn

Asset allocation to infrastructure averages 6% = US$ 4tn

An asset allocation of 11% would be needed to fund the planned marginal expenditure over next 5 years.

Mega projects & optimism bias

Completion delays

Overspend by 20% - 80%

Underperformance

Context

Insufficient funds to meet demand

Traditional financial models are inadequate

Projects complexity is growing

Risk of overspend is unacceptable.

Conventional project management is flawed.

Why form a think tank? Infrastructure investment is transformative.

It dominates economic policy

Inherent problems with mega projects need to be understood and resolved.

Pragmatic and innovative thinking is necessary.

Nations that get this right will prosper.

The Institute will be at the forefront of this innovative

thinking

Initial research Why mega projects are delivered late and over budget.

Relevance of PPP to large complex programmes and the rise of new funding structures.

‘Dark Risk’ in complex infrastructure projects

The Problem with Airports…are they viable or just necessary?

Will the Middle East consume the majority of global funds for the infrastructure asset class?

Can infrastructure expenditure still stimulate economic growth?

We hope that you will share the journey

Doha Launch

20th April 2013