EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION.
The OECD estimates USD 53 trillion in investment or the equivalent of an annual 2.5% of global GDP by the year 2030, to meet demand for infrastructure investment by 2030. Those numbers are so large and intimidating that most people are tempted to ignore them with hopes they will go away. Public sector budget shortfalls and a lack of willingness to address funding through legislative measures will make the situation worse with failures looming on the horizon. Those project sponsors who understand and articulate the full value and risk associated with their projects will realize an advantage in the competition for impact capital. Overtime, as comprehensive business cases become more common, users will realize additional benefits as projects are bundled and systems are managed on a basis of value for money as compared to other investment options.