Infrastructure Morality
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INSIGHT The global infrastructure magazine | Issue No. 8 | 2016 Infrastructure Morality Delivering on the Brazil emerges Catalyzing UN’s SDGs from the Car Wash development An interview with An interview with An interview with Amir Dossal Artur Coutinho Syed Uddin Page 12 Page 14 Page 16 #inframorality s a sector, we talk a lot around the morality of infrastructure. But we Ado not use those words. Instead, we talk about affordability, social benefit, development and access. And we aim to improve the morality of infrastructure through programs under an equally diverse Foreword set of themes — social responsibility, active investing and transparency, to name but a few. Yet — until today — no one has really stopped to consider how all of these trends, ideas and initiatives combine and coalesce to form a sense of ‘infrastructure morality’. There are no books or guidelines on infrastructure morality; no training courses or seminars to James Stewart Stephen Beatty Julian Vella dictate what is right and what is wrong. As a Global Infrastructure Chairman Americas and India Asia Pacific Head of result, it is often left to governments, investors, E: [email protected] Head of Global Infrastructure Global Infrastructure policy makers and developers to puzzle out @jaghstewart E: [email protected] E: [email protected] what is morally acceptable and what is not. @stephencbeatty @jp_vella © 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. That is why we are particularly proud of leads to a better world for us, our children One through to our interview with the head this edition of Insight magazine. Within these and our grandchildren. of the G20 Infrastructure Hub in Australia, pages, we have focused on tackling some of the This edition of Insight magazine also this section of our magazine highlights hard issues — flash-points such as migration, contains our Special Report on Asset important ideas and themes from across corruption, social equality and affordability. Delivery, a discipline that has become the infrastructure sector. And we have asked difficult questions of increasingly important as infrastructure On behalf of KPMG’s global network of infrastructure leaders and executives at the owners and operators strive to deliver infrastructure professionals, we would like forefront of the moral debate — Brazil’s improved capacity and customer service to thank all those executives and leaders construction leaders, Bangladesh’s PPP to users. As the articles in this Special who contributed to this edition of Insight executive and the Director General of Kenya’s Report illustrate, much has changed in magazine. We believe that the issues and Vision 2030 initiative, for example. the field of asset delivery over the past themes that we have explored together What comes through clearly is that few years; anyone seeking to enhance the in this publication are vital to the success there is, indeed, a growing appreciation productivity of their assets will find this of our sector and central to creating a just of the moral dimensions of infrastructure. section a valuable read. society for all. And it has deep implications — risks and Of course, there are always exciting To explore any of the themes identified opportunities — for infrastructure owners, projects and ideas emerging in the world in this publication — or to discuss your government, the public, developers, operators of infrastructure. And this edition of Insight own unique infrastructure challenges — and investors alike. We hope that this edition contains a number of other articles certain we encourage you to contact your local of Insight catalyzes a new and deeper view to interest infrastructure participants. From KPMG member firm or any of the authors of infrastructure morality which, ultimately, our discussion with the CEO of Hyperloop who contributed to this magazine. © 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Contents Around the Up Front: Deny world in migration at infrastructure 4 your peril 8 Up Front: It’s time to talk about morality 6 In this issue: Infrastructure Morality Positive returns and positive change in Africa 20 An interview with Angelia Nalikka, African Development Bank Quantifying the true value of Rejecting the scourge of corruption infrastructure 22 By James Stewart, Global An interview with Carola Infrastructure Chairman 10 Wijdoogen, NS Group Encouraging a culture of ethics Rejecting the scourge of corruption 24 10 An interview with Clorivaldo By James Stewart, Global Bisinoto, Andrade Gutierrez Infrastructure Chairman Construction Investing in secure futures for the world’s poor: Delivering 12 The power of social license 26 on the UN’s Sustainable By Richard Boele, Development Goals KPMG in Australia An interview with Amir Dossal, Global Partnerships Forum How to build sustainable 28 communities: Lessons from the Brazil’s construction companies 14 UK An interview with David Orr, Positive returns and emerge from the Car Wash UK’s National Housing Federation positive change in Africa An interview with Artur Coutinho, An interview with Construtora Camargo Corrêa 20 Keeping infrastructure affordable Angelia Nalikka, AfDB An interview with Cynthia Chaplin, 30 Catalyzing development: former regulator and regulatory Bangladesh’s PPP Authority 16 economist SIBs: Unlocking a new payment An interview with Syed Afsor H. model for infrastructure 34 Uddin, Bangladesh’s PPP Authority A vision for development: Kenya’s 32 By Tania Carnegie, KPMG in Canada Looking for a more sustainable Vision 2030 Creating opportunity: Diversifying approach to transportation 18 An interview with Professor Gituro the workforce 36 An interview with Stephen Joseph, Wainaina, Kenya’s Vision 2030 An interview with Christine Townley, Campaign for Better Transportation Delivery Secretariat Construction Youth Trust What infrastructure players need 38 to know about social listening By Gregory Daniel and James Griffin, KPMG in Australia Electrifying India with renewables An interview with Tarun Kapoor, 40 India’s Ministry of New and Renewable Energy Electrifying India with renewables Feeding the continent: Unlocking An interview with Tarun Kapoor, India’s Africa’s potential 42 Ministry of New and Renewable Energy 40 By Christian Lindfeld, KPMG in South Africa © 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Features Spotlight: Insights Asset Delivery Hyperloop at hyper-speed: Restoring faith in Disrupting the transportation sector 62 major capital projects An interview with Rob Lloyd, By Gary Webster, Global Head 46 Hyperloop One 12 of Capital Project Leadership Update: The G20’s Global Infrastructure Hub 64 An interview with Chris Heathcote, Global Infrastructure Hub Emerging trends in infrastructure 66 Will technology disrupt our infrastructure? 70 By Paul Foxlee, KPMG in Australia, and the Chartered Accountants of A new era of asset delivery: Delivering on the UN’s SDGs Driving value in a complex world 44 Australia and New Zealand An interview with Amir Dossal By Mel Karam, Global Head of Asset Time for a new approach to Management, Gary Webster, Global infrastructure planning and 72 Head of Capital Project Leadership, prioritization and Ryan Wolton, Global Head of By Lewis Atter, KPMG in the UK, and Sustainable Value Improvement Said Hirsh, KPMG in Australia Restoring faith in major capital 46 Making the most of infrastructure projects 74 investments 14 By Gary Webster, Global Head of By Stan Stavros and Paul Foxlee, Capital Project Leadership KPMG in Australia Putting the customer at the heart 48 Data everywhere but not on the of asset management whole-life cost of infrastructure 76 An interview with Kevin Young, An interview with Alex Murray, Sydney Water University College London How to keep projects from going 50 Start listening: A pulse on the off the rails infrastructure conversation on 78 An interview with Richard Price, social media UK’s Southern Water By Pranya Yamin, KPMG International Out of the basement: Enhancing Brazil emerges from the Car Wash asset management in the public 52 An interview with Artur Coutinho sector An interview with Bradley Leeman, City of Edmonton Integrating assets in a rapidly evolving world 54 An interview with Mohit Bhargava, NTPC 16 No more excuses: How to stop project delays before they start 56 By Gary Webster, Global Head of Capital Project Leadership Ensuring predictability in complex capital projects 58 An interview with Michael Furlong, Bristol-Myers Squibb Making the most of infrastructure investments Why data is the asset to manage By Stan Stavros and Paul Foxlee, By Mel Karam, Global Head of Asset 60 74 Catalyzing development KPMG in Australia Management An interview with Syed Uddin © 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Around the world in infrastructure Musk’s Hyperloop concept has New debt funding for start construction in 2021. The already found a potential first Thames Tideway? government will also allocate around customer