There is a strong appetite by the private sector to invest in infrastructure, writes Adele Ferguson :

WITH the federal election out of the way, Australia is set to get its biggest infrastructure reform with more than $200 billion of state and federal funds allocated to building and fixing roads, rail, ports, water and broadband.

But while we are about to be awash with government spending on infrastructure, the listed infrastructure sector has been bludgeoned by investors deserting stocks with high gearing levels.

Port and rail operator Asciano scrapped plans to buy Brambles due to difficult debt markets and a falling share price, SP AusNet scratched its controversial $8.3 billion deal to buy former Alinta energy assets from its major shareholder Singapore Power, and Australian Infrastructure Fund ditched a $150 million bond raising due to lack of investor interest.

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Posted by dcjaya at December 15, 2007 2:34 AM