PPPs: the Australian GFC experience

Key Points:
Recent projects indicate that the climate is improving and investor confidence in the infrastructure market is growing

Although Australia did not experience a recession, it has still experienced the same difficulties as the rest of the global finance sector, as liquidity left the wholesale financial markets, and the confidence levels of investors (of both debt and equity) fell.

The impact of the GFC has been felt in Australia in much the same way as elsewhere:

• the bond markets have closed;
• club bank arrangements have replaced syndications;
• infrastructure projects have been at risk of funding shortfalls;
• banks have been prepared to give only short commitment periods;