The Business 20 (B20) Taskforce on Investments and Infrastructure held its final session on Wednesday, June 20, at the B20 Summit at the St. Petersburg International Economic Forum. The Taskforce’s proposals, which were included in the final package of B20 recommendations to the G20 heads of the states, were approved at the meeting. During the St. Petersburg Forum, business representatives are to present the set of recommendations to Vladimir Putin, President of the Russian Federation, which will be reviewed by G20 leaders at the Summit in Strelna in September of this year.
The measures proposed by the Taskforce are designed to stimulate investment in infrastructure projects and focus on three main areas:
- Identification and removal of barriers to the free movement of capital.
Objectives: to increase cross-border investment activity; provide investors with equal access to investments across all the countries.
- Stimulating private investment in infrastructure projects and other real economy assets across all countries: creation of a $200 million G20 Project Preparation Fund.
Objectives: to increase the number of affordable structured infrastructure projects; develop new financial guarantees and reduce project financing costs.
- Increase productivity of investments in infrastructure and green energy projects by encouraging the application and development of international best practices: building an infrastructure research network, including the establishment of a Competence Center in Moscow; development of a set of public-private partnerships; formation of an expert group on energy.
Objectives: to increase capital efficiency; create savings of up to $1 trillion a year on investments in infrastructure.
Ksenia Yudaeva, Chief of the Presidential Experts’ Directorate of the Russian Federation, the Russian G20 Sherpa said:
"Stimulating investment for economic and employment growth, including through infrastructure projects, is one of the main priorities of Russia's G20 presidency. The recommendations of the Taskforce on “Investments and Infrastructure” offer viable solutions to restoring pre-crisis investment levels and maintaining rapid growth for infrastructure investments over the long-term. We have worked with experts of the highest quality whose work alongside the Russian and foreign co-chairmen of the Taskforce has been outstanding.”
Kirill Dmitriev, CEO of Russian Direct Investment Fund (RDIF), Chairman of the B20 Taskforce on “Investment and Infrastructure” commented:
"The key objective of our recommendations is to create the optimal conditions for global economic growth by promoting investment, especially in infrastructure. Approximately $60 trillion of global investments into infrastructure will be required in the run up to 2030. This represents more than the value of all the existing infrastructure today. The introduction of international best practices in infrastructure development would save up to $1 trillion per year, enabling world GDP to grow by at least 3% if these savings were re-invested."
Marcus Wallenberg, Chairman of Skandinaviska Enskilda Banken, Chairman of the G20 Advisory Group at the International Chamber of Commerce said:
“Open cross-border investment is an essential contributor to growth, development and jobs. G20 leaders should advance an international investment agenda by agreeing on a set of recommendations governing a high-standard G20 multilateral investment framework to be endorsed by all G20 governments. The 2012 International Chamber of Commerce (ICC) Guidelines for International Investment should be used as a template for such a framework.”
Martin Stanley, Global Head of Macquarie Infrastructure and Real Assets stated:
"Infrastructure development and renewal is critical to stimulating economic growth, but there is a growing gap between the demand for infrastructure and Governments’ ability to pay for it. The B20 Task Force is to be commended for its work on addressing this gap, encouraging new funding models and global standards for best practice in regulation and public to private processes. Such steps would help to create investor confidence and to attract a growing pool of long-term capital to where it is needed most.”
The Taskforce meeting was attended by the representatives of major investment banks, global sovereign and pension funds, leading transnational companies, international financial organizations and consultancies. Among them:
- Dany Truell, Chief Investment Officer at Wellcome Trust;
- Natalia Khanjenkova, Managing Director, EBRD;
- Hans-Paul Bürkner, Chairman, The Boston Consulting Group (BCG);
- Steven Kandarian, Chairman of the Board, President and CEO, Metlife;
- Richard Goyder, Chief Executive Officer, Wesfarmers
- Hamish Tyrwhitt, Chief Executive Officer, Leighton Holdings
- Vivek Kudva, Managing Director India and CEEMEA, Franklin Templeton Asset Management
- Antonio Brufau, Chairman & CEO, Repsol
- Dick Cashin, Managing Partner, One Equity Partners
- Alex de Valukhoff, Country CEO, Lafarge Russia
