Hinkley Point C, the Tunnelling and Underground Construction Academy, HS2 and the rebuilding of 261 schools across the UK feature in KPMG International’s latest Infrastructure 100: World Markets Report.
It identifies 100 of the world’s most innovative and impactful infrastructure projects – as judged by a panel of global independent experts - and highlights key trends driving infrastructure investment.
The 100 global projects demonstrate that with the right investment and project planning, infrastructure can be transformational, changing the face of nations and driving economic growth. With global infrastructure projects estimated to be valued of over US$1.73 trillion, the UK projects include:
- Energy: Hinkley Point C will be the first new nuclear power plant to be constructed in the UK in over 20 years, once the final investment decision is taken. The project will generate around 25,000 jobs during its nine years of construction. The new plant will provide for around 7 percent of UK electricity demand, equivalent to some five million homes
- Skills: The Tunnelling and Underground Construction Academy is a first of its kind and is the only soft-ground, tunnelling facility in Europe. The Academy has played and will continue to play a vital role in providing skills for projects such as London’s Crossrail, HS2, Thames Tideway, as well as national grid and EDF electricity cable tunnels
- Schools: The country’s Priority School Building Programme (PSBP) will rebuild 261 schools in a five-year period. The programme is being delivered by a central government team with results already demonstrating reduced timescales and a 35 percent reduction in cost from the previous school building programme. It is funded using traditional capital and private finance. The private finance is being raised using an “aggregator model” which can access the lower cost of capital provided by institutional investors
- Transport & Financing: The Northern Line Extension will not only improve transport links and create up to 25,000 jobs and 16,000 new homes but has a unique financing mechanism, paid for initially by a loan and with the UK Treasury guaranteeing repayment to reduce borrowing costs. This vehicle includes tax incremental financing with which the loan will be repaid over time by tax revenues from new businesses that set up in the defined economic development zone.
“Our latest showcase of projects from around the world highlight the vision, determination and innovation required to drive economic prosperity and social impact through infrastructure development. Each country has its own approach to developing and funding infrastructure, yet all share the challenge of creating the right conditions to attract investment,” said Richard Threlfall, KPMG’s UK head of infrastructure, building and construction.
“We see infrastructure investment improving lives, creating opportunity, and bringing the world closer together – ultimately creating a better world,” said Threlfall.
