Economics & Markets

PPPs are back and better than before

By AMP Capital

The image of public-to-private partnerships (PPPs) in relation to infrastructure took a hit a few years ago, but now they are back, and are much better for investors than before.

That's the view of AMP Capital Head of Investment Strategy and Chief Economist Shane Oliver, who said that in the years leading up to the 2008 financial crisis, investor syndicates often had to over bid for infrastructure opportunities to get access to them, making it difficult in some cases to cover the costs and make the assets profitable once completed. 

“The model has improved substantially,” says Oliver. “It’s less focused on encouraging the private partners to excessively bid up the price for the underlying asset and we’ve ended up with a more sustainable model."

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Important notes

While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455)  (AMP Capital) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.

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