Solutions to address the need for greater investment and better planning in resources sector infrastructure have been outlined in a new report released by the Chamber of Minerals and Energy of Western Australian (CME).
The Federal Assistant Minister for Infrastructure and Regional Development, the Hon. Jamie Briggs MP, launched the CME’s Investment in Resources Sector Infrastructure Report at an industry function last night.
Prepared in conjunction with PricewaterhouseCoopers (PwC), the report highlights the need greater investment in resources sector infrastructure.
“It’s clear Western Australia’s ongoing prosperity relies upon further investment in resources sector infrastructure, particularly as production levels increase,” said CME Director Nicole Roocke.
“The resources sector relies on a range of public and private infrastructure in delivering successful projects and commodities into the market. With public sector investment constrained by rising debt levels, it is crucial any impediments to attracting greater private sector investment are understood and addressed by both industry and governments,” said Ms Roocke.
The report noted the challenges constraining greater private investment in resources sector infrastructure include:
- a shortage of long-term, integrated planning for infrastructure;
- the complexity associated with structuring, funding and delivering multi-user projects;
- investor’s general aversion to accepting demand risk on greenfields infrastructure projects; and
- the inability of the private sector to capture a projects wider economic benefit in way that improves the financial viability of the project.
CME acknowledges the overall infrastructure requirements of the state will exceed the ability of any government to provide all infrastructure required, particularly with increased public sector debt.
“The State Government has a crucial role in infrastructure planning and co-ordination. This report aims to assist government and infrastructure investors to identify ways to encourage infrastructure development in the state. This includes the development of a state infrastructure plan and ensuring efficient investment frameworks are in place,” said Ms Roocke.
CME is pleased a number of the 14 recommendations in the report have already been actioned, or are being considered, including a review of the state’s strategic asset base, the announcement states will be compensated for the value of tax revenue that would otherwise move the commonwealth as part of the transfer of ownership, and possible changes to the structure of the Infrastructure Coordinating Committee.
“The future growth of the Western Australian resources sector is not guaranteed. With local projects facing an increasingly competitive environment, we need to ensure we have the right policy settings so the sector can continue to deliver benefits for all Western Australians,” said Ms Roocke.
CME’s Investment in Resources Sector Infrastructure Report is available here.
