Impact Publications : AirCargo -252
AirCArgo AsiA-PACifiC • DEC 2017- JANUARY 2018 • Page 27 Australia’s federal target of 33,000GWh generated from renewable sources by 2020 has led to vast investment in solar and wind projects, and Singapore’s multi-billion-dollar development of Changi Airport’s Terminal 5 and the Tuas shipping megaport will solidify its position as a premier transport and trade hub globally. Further afield, opportunities in Malaysia and India are plentiful, with renewable energy set to play a central role in future projects. Adrian Wong, partner at CMS Singapore said: “The Asia-Pacific region is home to some of the world’s fastest-growing economies and most ambitious infrastructure projects, and the spread of four countries within the Index top 20 reflects an ever-developing oppor- tunity for investment. While key success factors like government stability and political certainty cannot be ignored, the potential impact of the Belt and Road initi- ative alone promises to stimulate economic growth through the continent and far beyond.” Doctor Nicolas Wiegand, partner at CMS Hong Kong added: “The risks of adverse government inter- ference that are typically associ- ated with investing in the Belt and Road jurisdictions are mitigated through an extensive and ever-ex- panding network of Asia’s invest- ment treaties and free trade agree- ments with integrated investment chapters. In addition to investment treaties, the political risk insurance industry in the Asia-Pacific region has developed sophisticated insur- ance policies for insuring foreign investment in volatile Asian juris- dictions. As with previous years, investor-State arbitration remains an efficient tool to protect foreign investments in Asia, with Chinese companies becoming increasingly frequent users of investor-State dispute settlement mechanism.” Europe European countries have bounced back after a period of stagnation. Quantitative easing, the Juncker Plan and EIB support have all contributed to acceler- ated levels of EU infrastructure spending in recent years, and with economies such as Czech Republic and Romania experienc- ing significant expansion, there is room for optimism for future investment, according to the report. Europe as a whole has experi- enced an upsurge in infrastruc- ture investment, as many politi- cians have used infrastructure investment as an economic stim- ulant. As well as the Netherlands and the UK, Germany, Norway and France all ranked highly in the study, particularly for inno- vation. In Germany, all dominant parties have placed their support behind PPPs, and it is expected that deal flow, particularly in large-scale transport PPPs, will stay the course. In the UK the impact of Brexit and general political instability is already starting to have an impact on infrastructure invest- ments, as investors struggle with a lack of certainty in the country. Those operating across the sec- tor are clearly looking for com- mitment and long-term policy from government to allay fears. The report highlights in particular the lack of consensus over infra- structure mega-projects such as a third Heathrow runway. In the Americas, Canada leads the way, while a lack of detail on Trump’s proposed US$1 trillion US infrastructure project leaves the US lagging behind in seventh position. Notably, the Canadian government is to launch the Cana- dian Infrastructure Bank in 2017, providing a boost to the already reliable infrastructure market. UAE In other regions, MENA has suc- ceeded in looking at alternatives to combat ongoing low oil prices. UAE and Saudi Arabia both have shown a keen interest in renew- ables. UAE has already played a pioneering role in exploiting high levels of solar irradiation, while Saudi Arabia’s recent commit- ment to clean energy is hailed as a game changer for the regional pipeline. The report also highlights poten- tial new emerging asset classes including 4G, charging stations, car parks and technologies which already have started to revolution- ise infrastructure. One example is the rise of smart roads and smart cities, thanks to the interaction of road sensors, fibre optic net- works, interconnected self-driving vehicles and inductive charging roads laying the foundations for a new generation of self-charging and self-driving electric vehicles. Cities like Dubai and Singapore are already making strides to lead the next wave of digital innovation. Australia, Singapore and China are driving increased interest in infrastructure investment in the Asia-Pacific region.