What investors want to see in infrastructure financing
AN equitable investment environment, supported by rule of law, will be crucial to attract international investment to large infrastructure projects in Asia, says Julian Vella. Head of KPMG’s Asia Pacific Infrastructure practice.
“The big challenge is to create an environment where the private sector is comfortable,” says Vella, giving as examples same high-profile instances of investors being exposed to significant risks in China and Mongolia.
Mongolia is attractive to international mining companies because of its rich reserves of coal, copper and other resources. But the risks are high. It took Rio Tinto six years to conclude negotiations on a mining agreement.