THE INFRASTRUCTURE FUNDING GAP CICA Countries Jorge Mas

THE INFRASTRUCTURE FUNDING GAP CICA Countries Jorge Mas President Confederation of International Contractors’ Associations

OVERVIEW – AMERICA CONFEDERATION OF INTERNATIONAL CONTRACTORS’ ASSOCIATION

OVERVIEW – EUROPE CONFEDERATION OF INTERNATIONAL CONTRACTORS’ ASSOCIATION

OVERVIEW – ASIA CONFEDERATION OF INTERNATIONAL CONTRACTORS’ ASSOCIATION

OVERVIEW – OCEANIA CONFEDERATION OF INTERNATIONAL CONTRACTORS’ ASSOCIATION

The framework of modern life we rely upon each day

Contribution of the construction industry to the world’s GDP is estimated at 10%

Increasing demand for new infrastructure

No easy task

“Just keeping pace with projected global GDP growth will require an estimated $49 trillion in infrastructure investment between now and 2030”

US$49. 000

Ejemplificar la annual cuantía. GDP de of esta cifra 20 times the France

40% of global infrastructure and capital project investment poorly spent

Global investment in infrastructure in the last 18 years 3. 8% of GDP

Value of infrastructure stock in developed economies 70% of GDP

Infrastructure development: why is it important? Global competitiveness index Figure elaborated from WEF Data

The Mega Trend Matrix, 2025 Figure by Frost & Sullivan

Limitations and restrictions d e t c e j Re

1. Public Investment Funding

2. Project complexity and uncertainty

3. Political and institutional issues

Bridging the infrastructure gap

Requirements in infrastructure investment (2016 -2030) : US$49, 1 trillion 22 16 22 US and Canada Western Europe 12 7 Developed Asia 29 Eastern Europe China 14 Latin America 26 5 5 4 4 3 1 Historical infrastructure spending (20002015) Middle East 4 7 Other emerging Asia 5 6 India 6 2 Africa Needed investment (2016 -2030) Figure adapted from Mc. Kinsey data 60% of total in emerging economies

The goal: To mobilize US$ 120 trillion available from banking and institutional investors to bridge the infrastructure gap towards 2030

Infrastructure need by economic sector

Global Annual requirements in infrastructure investment 2016 -2030 (US$ billion) Figure adapted from Mc. Kinsey data

CICA Countries Annual requirements in infrastructure investment 2016 -2030 (US$ billion) Figure adapted from Mc. Kinsey data

CICA Countries Annual requirements in infrastructure investment 2016 -2030 (US$ billion) Figure adapted from Mc. Kinsey data

Transport

America (selected countries) Annual Transport requirements in infrastructure investment 2016 -2030 (US$ billion) Data from Oxford Economics, Argentinean Chamber of Construction, Chilean Chamber of Construction, Mc. Kinsey Institute.

Europe (selected countries) Annual Transport requirements in infrastructure investment 2016 -2030 (US$ billion) Data adapted from Oxford Economics and Mc. Kinsey Institute.

Asia and Oceania (selected countries) Annual Transport requirements in infrastructure investment 2016 -2030 (US$ billion) Data adapted from Oxford Economics and Mc. Kinsey Institute.

Energy (selected countries)

America (selected countries) Annual Energy requirements in infrastructure investment 2016 -2030 (US$ billion) Data from Oxford Economics, Argentinean Chamber of Construction, Chilean Chamber of Construction, Mc. Kinsey Institute.

Europe (selected countries) Annual Energy requirements in infrastructure investment 2016 -2030 (US$ billion) Data adapted from Oxford Economics and Mc. Kinsey Institute.

Asia and Oceania (selected countries) Annual Energy requirements in infrastructure investment 2016 -2030 (US$ billion) Data adapted from Oxford Economics and Mc. Kinsey Institute.

Telecommunications (selected countries)

America (selected countries) Annual Telecommunications requirements in infrastructure investment 2016 -2030 (US$ billion) Data from Oxford Economics, Argentinean Chamber of Construction, Chilean Chamber of Construction, Mc. Kinsey Institute.

Europe (selected countries) Annual Telecommunications requirements in infrastructure investment 2016 -2030 (US$ billion)

Asia and Oceania (selected countries) Annual Telecommunications requirements in infrastructure investment 2016 -2030 (US$ billion) Data adapted from Oxford Economics and Mc. Kinsey Institute.

Measures to boost infrastructure investment

1. Planning and regulatory framework

2. Private-public parterships

3. Alternate funding sources

4. Project pipelines

Case of success: “East Asian Miracle”

“The illusion that we can insulate ourselves from the forces of nature”

“The illusion that we can insulate ourselves from the forces of nature”

THANK YOU