US, September 30, 2014: According to a new report (Global Infrastructure Investment Index) published by ARCADIS, a global natural and built asset design and consultancy firm, Singapore has emerged as the most attractive global market for infrastructure investment.
Comparing the results to the 2012 study, the biggest change at the top of the table is the improved rankings of the US and the UK – both of which have entered the top 10 by gaining three places in the index. The US has made it into the top 10 for the first time by ranking eighth. Improvements across all business indicators and an improved financial environment have increased the appeal of US projects, but one of the major factors is the huge, unmet need to rebuild or maintain aging infrastructure like public transportation, roads and water systems.
Additionally, planners are rethinking how to make cities and communities more resilient to flooding, drought and other challenges. The report cites estimates from the American Society of Civil Engineers (ASCE), pointing to the need to rehabilitate $3.6 trillion in assets by 2020 against a budget forecast of $2 trillion. To bridge that $1.6 trillion gap, government leaders are looking at alternative and private investment models.
The findings come from the second ARCADIS Global Infrastructure Investment Index, which ranks 41 countries by their attractiveness to investment in infrastructure. To gauge their appeal, the study looked at several criteria, including the ease of doing business in each market, tax rates, GDP per capita, government policy, the quality of the existing infrastructure and the availability of debt finance. Combining all of these factors provided a strong overview of the risk profile for each market and how attractive each one is likely to be to potential investors.