International Best Legal Practice in Project and Construction Agreements
Governments are encouraging further involvement in infrastructure investment from superannuation funds, primarily to assist in closing Australia’s infrastructure gap, which is currently growing at an estimated rate of $20 billion per year.
However, investment activity has been impacted by the perceived risks in greenfield infrastructure investment. The identification, allocation and management of risks are matters that superannuation funds must address if they are to participate successfully in infrastructure investment during the implementation and delivery phases of greenfield projects.
This Best Practice Guide aims to provide some guidance to superannuation funds in identifying, allocating and managing those risks, from both a legal and commercial perspective.
This Best Practice Guide is also a useful tool for experienced infrastructure funds, governments, developers and lenders investing in infrastructure.
It contains detailed position papers on greenfield risks relating to time, cost and, in our view, the critical risk in any project – underperformance. It also contains corresponding papers on liability issues. All of these will enable you to better understand the risk exposures when investing in greenfield infrastructure projects and evaluating latent risk in brownfield infrastructure projects.
The size of superannuation funds is projected to reach $5 trillion by 2030, and the need for new and diversified investment will only increase.
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