Infrastructure spending requirements at a global level could reach US$50
trillion over the next 25 years
MONTREAL, June 20, 2011 /CNW/ - Canada is joining the ranks of countries
around the world that are pumping funding into infrastructure to
support future growth in a competitive global market, and create jobs
in the short term, Ernst & Young says in a new report coproduced by
Urban Land Institute. Using $16 billion in recent stimulus funding,
Canada is making headway in addressing issues of aging urban
"Confronting aging infrastructure is essential for of our Canadian urban
areas to be able to compete globally," explains Daniel Roth, Ernst &
Young Infrastructures Services Leader based in Quebec. "Countries that
aggressively pursue the infrastructure agenda are not only preparing to
accommodate growing populations in urban environments. They're
bolstering their economies, stimulating growth, and working to ensure
their long-term competitiveness on the global stage."
The study, Infrastructure 2011: A Strategic Priority, predicts the cost of meeting global infrastructure requirements over
the next 25 years could reach US$50 trillion. The report also
emphasizes the challenges cities face in providing adequate transport
and other infrastructure services for residents, workers and
The report identifies the five other countries who lead in
China is investing over US$1 trillion over five years in an unprecedented
10,000-mile high-speed rail network, a nationwide toll highway system,
state-of-the-art airports and sea ports.
India will double its infrastructure spend to US$1 trillion, or about nine
percent of its gross domestic product, to nurture aspirations for
global economic leadership.
Brazil is kicking into high gear with a US$900 billion multi-year
infrastructure plan, including a high-speed rail line, new power
plants, hydroelectric dams and port construction.
Australia is investing to help set national priorities, identify regulatory
reforms and set guidelines for attracting more private capital.
The UK, despite its severe austerity budget, is allocating US$326 billion to
its five-year national plan.
"Many governments around the world rank infrastructure policy among
their greatest concerns," explains Roth. "They formulate national
plans, execute on long-term strategies, protect budgets from cutbacks
in difficult fiscal times, and, in some cases, accelerate spending.
These nations see modernization of infrastructure as critical to future
economic competitiveness and/or crucial to accommodating expanding
populations in urbanizing environments."
There are ways to make real progress in a limited funding context. The
report suggests the following approaches:
Focus attention first on critical repairs and upgrades.
Develop a national infrastructure strategy, funding merit-based projects
that support the country's overall economic priorities.
Concentrate spending on the nation's metropolitan areas and global
Provide greater long-term certainty for national and state/provincial
funding to support planning for capital projects.
Institute government-sponsored infrastructure banks to support public
and private project financing.
Phase in user fees to help fund infrastructure renewal and maintenance
on a continuing basis.
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