Today, some 55 per cent of the world’s population live in urban areas. The United Nations projects that this will increase to 66 per cent by 2050, with 2.5 billion people being added to urban populations by then – 90 per cent of this increase will be concentrated in Asia and Africa. Over the next two decades, the OECD estimates that some US$40 trillion will be needed for infrastructure investments globally. This creates huge opportunities for companies and financers in both private and public sector infrastructure development, such as electricity grids, power stations, water supply and treatment plants, roads and railways, bridges, airports, telecommunications networks, schools, hospitals, and more.
While funding of such projects have traditionally been the responsibility of regional or national governments, multilateral organisations and the private sector have an increasingly important role to play. Private capital provides more than just funding to projects, as it also adds invaluable knowledge and experience, as well as accountability. The landmark UN Third International Conference on Financing for Development in July also highlighted the importance of mobilising from a diverse range of players financial and technical resources for development. The Conference also emphasised the need to strengthen global partnership for financing sustainable development – that is focused on both people and the environment.
Amid competing priorities, how should governments allocate public funds to urbanisation projects? How will they ensure that these projects are sustainable? What are the challenges and opportunities in attracting private capital? What are some successful models of public-private collaboration? This panel will focus on the role of public-private partnerships in financing sustainable development, including the pitfalls of locking capital into unsustainable long-term projects, as well as the emergence of sustainable investing.
