SESSION 1: Infrastructure development as a key policy measure for economic recovery in a post-pandemic world

Background for the session:
Infrastructure plays a vital role for sustained economic growth. Infrastructure investment can boost growth by raising productivity. Several studies have found significant total factor productivity effects of infrastructure. The role of infrastructure investment is especially relevant in the current context of the Covid-19 shock. As countries develop their strategy for the recovery, infrastructure investment projects can be an important tool to support near-term employment and economic activity (IMF, 2020a; IMF, 2020b). Investment in infrastructure has been found to have a higher fiscal multiplier than other type of spending, implying a stronger boost to aggregate demand (Abiad et al., 2016)

The role of the private sector in infrastructure is essential not just in mobilizing the required expertise and know-how but also related to bringing private sector monies in the form of debt and equity. Private sector financing through public private partnerships (PPPs) are known to be more advantageous than government borrowing through financial markets because they support growth while containing the impact on public debt. Pension plans, as holder of major financial resources, are critical players in the development of infrastructure.

Format of the session
The session will start with a brief presentation by Dr Cledan Mandri-Perrott on the growth in the role of the private sector in infrastructure and how this has affected the investment landscape.

After the presentation, a panel discussion will bring together leading experts in the field of Infrastrucutre development representing the public, private and investor perspective (pensions primarily) to discuss the following critical issues:

• Infrastructure development has come to the fore as a key policy measure for economic recovery in a post-pandemic world. What are the leading forces behind such ambitious plans and how can pension funds benefit from initiatives such as the European Union’s Euro 780 m recovery plan or President Biden’s US$2 trillion infrastructure plan?
• What is the role of green infrastructure and why is this important?
• European Commission is putting together one of the world’s largest fund for innovative low-carbon technologies together with the European Investment Bank – what can investors learn from the EUR 20 billion INEA Innovation Fund? What is the benefit to developers?
• How can investors best benefit from these trends?
• Are pension funds really interested in infrastructure as an asset class and what are the key characteristics that make this attractive to them?
• As a private investor, are you looking to partner with pension plans in the development of infrastructure projects? Is there a benefit in partnering in the early stage so f development of a project with a pension fund as opposed to a traditional commercial bank?