Mott MacDonald, the diverse engineering, management and development consultancy has become the partner to the Pensions Management Institute (PMI) as the professional body’s infrastructure finance and investment expert. The partnership will aim to demystify the infrastructure financing process for PMI members, enabling pension fund investors to unlock the stable, long term returns that infrastructure projects can offer.
Large pension funds in Canada and Australia have been investing in public–private partnership infrastructure successfully for many years now to the point where they now seek such investments outside of their countries’ shores. In comparison, some UK pension funds have invested in existing ‘brownfield’ infrastructure projects, but so far have rarely considered new, greenfield infrastructure as investment alternatives, where higher yields can often be achieved.
John Seed, Mott MacDonald’s infrastructure, finance and investment director, commented: “Billions of pounds worth of investment in infrastructure is needed for the UK to remain competitive and private investment will be necessary to fill the government shortfall. To encourage new sources of investment, the government launched Private Finance 2 (PF2) which seeks to reduce the risk to institutional investors, making construction projects a more attractive proposition. A number of UK pension funds have also agreed to take a stake in the newly formed Pension Infrastructure Platform (PIP) which is managed by the NAPF in order to help make infrastructure investment a much more accessible option for such investors. As a result, pension funds could play a significant role in developing UK infrastructure while making a significant return on their members’ investment.”
Mott MacDonald is the world’s leading technical adviser by project value and has held this top spot for many years now. The consultancy provides private finance due diligence advice on projects in all infrastructure sectors including highways, railways and metros, airports and hub seaports, hospitals, schools, housing, government and cultural buildings and sports stadia.
Vince Linnane, PMI chief executive, commented: “Through these professional partnerships the PMI seeks the highest standard and quality of independent services and information for its members. By partnering with Mott MacDonald, the world’s leading technical adviser for private finance projects, our members will benefit from the consultancy’s extensive and varied technical and management expertise.”