30 Jan 2012:
Obama Emphasizing Infrastructure
During the State of the Union Address, US President Obama emphasized the importance of infrastructure investment in bolstering the American economy. Specifically, he proposed using half of the money being saved from defence budget cuts to be put towards rebuilding the nation's infrastructure. Here's a blurb:
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28 Nov 2011:
Dear Pension: Can You Please Pay For My Infrastructure?
We knew this day was coming. Western governments have finally come to recognize that they: 1) are broke; 2) are unable to repair (or build) their dilapidated (or non-existent) infrastructure; 3) are looking for ways to spur domestic growth (i.e., by investing in infra); and 4) are increasingly keen to tap into the $70 trillion sitting in the world's institutional investors. Here are some of the most recent examples:
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22 Nov 2011:
Unlocking Capital for African Infrastructure
Africa needs infrastructure. In 2006, which is the latest year for which we have data, the gap between infrastructure needs and infrastructure funding on the continent was something on the order of $48 billion. Finding mechanisms to fill this gap is one of the pressing policy questions of our time, as over a billion Africans are living without basic infrastructure to facilitate growth and development.
Enter Sokoni Africa Infrastructure Marketplace, which is a new technology platform that was recently endorsed by the G20. Sokoni offers a virtual marketplace to bring buyers and sellers of African infrastructure projects together - all to the benefit of Africa!
Sokoni is the brainchild of two people: Bobby Pitman of the African Development Bank and Ryan Orr of the Zanbato Group (and Stanford). Given that I share an office with Ryan at Stanford (when he isn't off solving the world's infrastructure problems), I rang him up to get the scoop on Sokoni. Here's our (distilled) conversation:
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7 Nov 2011:
G20 Endorses Tech Platform For Infra Investing
Last week, the G20 formally endorsed a new technology platform that will provide a marketplace for buyers and sellers of African infrastructure investment opportunities. The platform (which is being developed by Stanford alumni) enhances the speed and efficiency of asset sales and capital raises by using technology to facilitate the work of those looking to finance African infrastructure assets, as well as potential donors and global capital providers interested in investing in Africa. Congratulations to the Sokoni team on a remarkable acheivement!
13 Oct 2011:
US Administration Expects Infra Deal Before 2012
Transportation Secretary Ray LaHood said on Thursday that he expects Congress to finalize a new infrastructure program before the end of the year. That's the good news. The bad news: the Congressional leadership just said the Administration's plan is "dead on arrival". Alas, the politicization of of key policy issues continues.
27 Sep 2011:
Infrastructure Investment in Weak Institutional Contexts
Maria Victoria Murillo and Alison E. Post have an interesting new paper out entitled, "Infrastructure Investment in Weak Institutional Contexts: Exit Threats and Regulatory Bargaining in the Argentine Electricity and Water Sectors." It's well worth reading, as it rewrites some of the traditional strategies adopted by infrastructure investors in difficult institutional contexts. Here's the abstract:
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23 Sep 2011:
Obama Highlights Need For Infrastructure Repairs
US President Obama was in rival territory this week to promote his jobs bill, which will focus on rebuilding and repairing failing US infrastructure. As Mr. Obama said,
"There's no reason to stand in the way of more jobs. Mr. Boehner, Mr. McConnell, help us rebuild this bridge."
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16 Sep 2011:
India: Infrastructure's a Trillion Dollar Discussion
There's some news out today suggesting that India's planning commission will try to invest upwards of $1 trillion on domestic infrastructure between 2012 and 2017 (the 12th five year plan). The focus will apparently be on ports, roads, railways and power infrastructures. Read more here.
14 Sep 2011:
CalPERS' $800M Allocation To Californian Infrastructure
In June, the State of California managed to stave off fiscal crisis by filling a $26 billion budget deficit with dramatic spending cuts. Fast forward to Monday, when the California Public Employees' Retirement System (CalPERS) Board announced it would invest an additional $800 million in California infrastructure over the next three years (four times the fund's current allocation to Californian infrastructure). Coincidence? Implications? Deep thoughts? Read here.
12 Sep 2011:
Public Pensions Boost Infrastructure Investments
During the financial crisis, many public pension funds put plans to expand (or create) allocations to infrastructure assets on hold. However, according to a new article by Institutional Investor, these large funds are now coming off the sidelines:
"There are plenty of opportunities as cash-strapped governments search for capital to build, repair and run everything from airports and power grids to bridges and waste facilities."
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