Conference Day One - Thursday 20 November 2014
Click here for the Pre-conference Learning Sessions
08:30 Registration and welcome coffee
08:50 Opening address from the Chair
Roger Black, Executive Director, Infrastructure Association of Queensland
SETTING THE SCENE: EXAMINING AUSTRALIA’S INFRASTRUCTURE DEAL PIPELINE
9:00 Welcoming address: Exploring global infrastructure pipelines and the
international competition for investment in infrastructure
- Providing a brief overview of global infrastructure development
- Examining key prospects in neighbouring Asia
- Potential implications for infrastructure development and investment in Australia
Ian Greer, Chair of the Australian Branch Council of the International Project Finance Association
09:15 Ministerial keynote
Fostering investment in the economic development of the Northern Territory
The Hon Peter Styles, MLA, Minister for Transport and Infrastructure, NT
09:30 Opening round table discussion
“The virtuous circle” – building a more consistent pipeline of
greenfields infrastructure projects and deal flow in brownfields
privatisations in Australia
- Examining the importance of a consistent pipeline of appealing projects for investors and infrastructure developers alike
- Moving from a project landscape dominated by large projects with significant pauses in between to a more consistent pace of small, medium and large pieces
- Increasing the volume and regularity of deal flow into the cycle of greenfields infrastructure development and brownfields privatisation
Round table discussion leaders:
Paul Roe, Director Financing and Funding Policy, Infrastructure Australia
Philip Gaetjens, Secretary, NSW Treasury
Wes Ballantine, Group General Manager, Queensland, Transurban Group
Steve Lambert, Executive General Manager, Debt Markets and Specialised Finance, National Australia Bank
10:20 Project showcase
Highlights of Australia’s infrastructure pipeline
- Showcasing highlights of Australia’s current and proposed brownfield privatisations up for offer and new greenfield infrastructure developments in the early stages of development.
- Providing investors and infrastructure development stakeholders with the opportunity to learn more about the latest Australian infrastructure asset offerings.
Projects to be showcased include:
An overview of federal greenfield and brownfield infrastructure projects open to investment
Hugh Funder, Senior Investment Specialist – Infrastructure, Australian Trade Commission (Austrade)
Infrastructure investment opportunities available in Queensland
Mark Gray, Under Treasurer, Queensland Government
The latest update on Victorian Smart Managed Motorway developments
Sohail Muhammad, Intelligent Transport System Manager, VicRoads
Providing an update on the growing Green Square precinct
Kim Woodbury, Chief Operating Officer, City of Sydney
11:10 Morning tea
CAVEATS AND CHALLENGES AROUND CAPITAL RECYCLING AND PRIVATE INVESTMENT
11:40 Panel discussion
Protecting infrastructure service delivery objectives when
privatising formerly publicly held assets
- How do you ensure sufficient regulation to ensure delivery of infrastructure objectives?
- What is the role of umpires in a changing regulatory framework?
- What economic regulation is necessary?
- What social outcome or service delivery regulations are required?
- Price oversight and regulation – how does this vary from asset types?
- Ensuring technical efficiency gains (cost reduction or value return) offered by the private sector do not come at the detriment of allocative efficiency (social equity and service delivery outcomes)
- Balancing potential bottlenecks to cash flow against service outcomes and quality of service
- How do we tailor appropriate regulation to different asset types?
Panel moderator:
Roger Black, Executive Director, Infrastructure Association of Queensland
Panellists:
Mark Gray, Under Treasurer, Queensland Government
Peter Taylor, Executive Director, Global Investment, Hastings Infrastructure
Darryl Mutzelburg, Chief Financial Officer, Port of Brisbane Pty Ltd
Stuart Wilson, Deputy Executive Director, Water Services Association of Australia
Michael Bradburn, Chief Financial Officer, Brisbane Airport Corporation Pty Ltd
Dennis Chant, Managing Director, Queensland Airports Limited
12:30 Building and operating major private transport infrastructure –
Lessons learned developing the Brisbane Wellcamp Airport
- Discussing the rationale behind investment in and development of the Brisbane Wellcamp Airport
- Exploring the opportunities to bring this project to fruition and how they have been harnessed
- Collaboration with key project stakeholders
- Overcoming obstacles and challenges along the road/tarmac
John Wagner, Chairman, Brisbane Wellcamp Airport
12:50 Networking lunch
13:50 Panel discussion
Examining the benefits of public investment in infrastructure
- Is public debt a four letter word? – should public investment in infrastructure be entirely avoided
- The case for intergenerational payment for infrastructure with intergenerational benefits
- Outlining advantages of the lower public cost of capital
- Risks around conflation of investment in infrastructure asset purchases and sales with general operating balances
- Providing for infrastructure assets with spillover benefits that cannot be captured efficiently by user charges or availability payments
Panel Moderator:
Roger Black, Executive Director, Infrastructure Association of Queensland
Panellists
Dr Peter Burn, Director Public Policy, Australian Industry Group
Greg Maclean, Global Head of Research, Infrastructure, AMP Capital
Jon Stanford, Director, Insight Economics
14:30 Exploring alternatives to capital recycling - facilitating timely
injections of private capital and reducing pressures on
government balance sheets
- Examining the fundamental principles of asset recycling
- Challenges around lag times in availability of project volumes to investors
- Potential difficulties in delivery of sustainable project volumes by public sector agencies.
- Economic opportunity costs of lag and capacity constraints
- Exploring alternative solutions to kick starting infrastructure development through re-mobilising private sector interest in developing green field economic infrastructure, allowing both the public and private sectors to work in parallel.
- Examining new models of risk sharing between the public and private sector
- Issues around the “recycling” model as a defacto acknowledgement that governments will have to accept more development risk.
Greg Maclean, Global Head of Research, Infrastructure, AMP Capital
ADVANCES IN PROJECT FINANCE: PUBLIC PRIVATE PARTNERSHIP CHALLENGES AND SOLUTIONS
15:00 The Inverted Bid Model: a new paradigm in project finance
Developed in partnership with Industry Super Australia and IFM Investors, the inverted bid model of project finance presents a landmark change in public/private finance structures for infrastructure projects. During this session, David Dombkins and Jane McGill, originators of the model will address features of this new advance in project finance and potential benefits to infrastructure investment in Australia including:
- Escalating infrastructure investment by reducing bid costs and project timeframes
- Enhancing investor returns and reducing their return volatility by increasing the pool of attractive illiquid assets
- Addressing the infrastructure deficit
- Lifting productivity growth through an increase in capital intensity
- Filling the economic growth void in the rotation away from mining investment
Dr David Dombkins, Director, Complex Program Group
Jane McGill, Senior Policy Officer, Infrastructure, Industry Super Australia
15:30 Panel Discussion
Project alliance fundamentals – what makes for a strong
consortium partnership?
- What are the secrets of alliance success?
- How does a good project company come together?
- Negotiating project terms and partner arrangements
- Essential considerations in forming and maintaining a functional partnership
- The importance of proactive communication and teamwork in alliance success
Panel moderator:
Roger Black, Executive Director, Infrastructure Association of Queensland
Panellists:
Peter Love, John Curtin Distinguished Professor School of Civil and Mechanical Engineering, Curtin University
Professor Derek Walker, Program Director, Property Construction and Project Management, RMIT
Shaun Cumming, Alliance Manager, Barwon Water Alliance
16:10 Afternoon tea
EXAMINING THE NEXUS BETWEEN REGULATORY REFORM AND INFRASTRUCTURE INVESTMENT
16:40 Panel discussion
Overcoming regulatory impediments and creating incentives
for investment
This panel discussion will examine the regulatory and structural reforms necessary to promote further
investment in Australia’s infrastructure assets, with a focus on:
- Moderating regulatory shifts and changes – promoting stability and clarity
- Moves towards national regulatory harmonization and future action planned towards this end
- Optimising the relationship between regulation and global competitiveness in Australia’s infrastructure sector
Panel moderator:
Roger Black, Executive Director, Infrastructure Association of Queensland
Panellists:
Jon Stanford, Director, Insight Economics
Peter Olah, Executive Director, Council of Mayors, South East Queensland
David Gibson MP, Chair, State Development, Infrastructure and Industry Committee, Queensland Legislative Assembly
17:30 Closing remarks from the Chair
17:40 Close of Day One and networking drinks
19:00 Official summit dinner
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