Industry superannuation fund owned IFM Investors has proposed a new way to finance infrastructure construction to help “kick-start” the economy.
IFM’s proposed ‘Building Australia Model’ sought to reduce the risk of cost blowouts and delays on major greenfield projects, required long-term ownership and ensured a competitive and transparent tender process.
It also aimed to avoid risks being shifted back to governments which typically led to project delays and cost overruns that hurt taxpayers, and to increase the ability of local medium-sized contractors to compete with large contractors backed by passive investors.
The intended benefits would be major projects broken up into smaller packages, less risk for taxpayers with more active management of projects by the long-term equity partner and more effective risk transfer to the private sector.
David Neal, IFM Investors chief executive, said the Building Australia Model would help create jobs, boost the economy as we recover from COVID-19, and protect and grow the retirement savings of millions of working Australians.
“IFM Investors is ready to invest billions of dollars in job-creating Australian infrastructure projects – we are putting forward this constructive proposal to help us do just that,” Neal said.
“This model is a win for taxpayers and it’s a win for working Australians: it will help grow their superannuation returns, while delivering them the public benefit of better infrastructure now and into the future.”
