7th International Annual Conference of the Long-Term Investors Club (LTIC) -How to take on the Long-Term Challenge
The infrastructure sector faces major challenges. These include insufficient investments, partly due to fiscal consolidation, as well as shortcomings caused by poor project selection and planning, inefficient delivery and persistent emphasis on building new capacity rather than using existing assets optimally. Among the market inefficiencies, there is a lack of suitable project pipelines, inadequate risk-adjusted returns, prudential and regulatory constraints and high development and transaction costs. But there is also lack of public resources - due to tough fiscal constraints and high public debt which characterize many countries in the world - to complement cash flows coming directly from the projects, which often are not sufficient to make the economic and financial plans sustainable in the long term.