Private capital in infrastructure: Illiquid assets still a hurdle

Singapore

INFRASTRUCTURE investment has to become a tradable asset class in order for private capital to help bear some of the burden usually borne by governments and banks.

Otherwise, the massive capital investments and long horizons needed for say, a dam, gas network, toll road or port terminal, over its extended lifetime, would prove too much for funds and insurers to bear - especially when coupled with the political risks of changing governments and tariff structures.