A LACK of clarity on private investment opportunities in major public projects is a significant barrier to infrastructure development, according to the Property Council of Australia (WA).
The Property Council has released a report called ‘Mind the Gap: The costs of WA’s infrastructure provisioning framework’ following the deferral of MAX light rail and airport rail link projects, amid claims infrastructure had become a ‘political football’.
Council executive director Joe Lenzo said the research showed investors wanted a consistent flow of investment opportunities, a portfolio of current and future projects, and clarity over which projects were earmarked next.
“(Investors told us) if we’re going to invest in WA in big infrastructure projects we want some certainty that indeed the government is dinkum in delivering them, and (not having certainty) was the big turn off,” he said.
The Property Council found there had been considerable underinvestment in Western Australia’s infrastructure over the past 40 years, with the value of current infrastructure stock $59.2 billion below the accepted global average.
The Property Council is currently in discussions with the state government and the opposition regarding the establishment of an independent infrastructure body that would take responsibility for long-term planning, prioritising and delivering projects.
