INFRASTRUCTURE 100 World Markets Report Photography Necessity or opportunity?: William CY Chu/Getty Images Edmonton, Metrolinx, British Columbia Hydro and Power Authority, Government of Ontraio, Carnegie Wave Energy Limited, WestConnex Delivery Authority, Meet the judges: Andrew Rowatt/Getty Images Infrastructure New South Wales, Tecnicas Reunidas, UK Education Funding Agency, Crossrail Tunnelling and Underground Construction Academy, Nine Elms on the Economic Powerhouses: Kentucky Transportation Cabinet, City of New York – South Bank and Transport for London, Transcity A Stronger More Resilient New York, New York City Economic Development Corporation, Rebuild by Design, BIG Team, Abengoa Solar, Basic Design, Move Sao Smaller Established Markets: Amager Ressource Center, SKA Organisation, Paulo – Google, Gujarat International Finance Tec-City Company Limited, Broad Odebrecht Infrastructura, Singapore Land Transport Authority, Facebook, Sustainable Building Company, Press Association Landsvirkjun, National Power Company of Iceland, 8 Million City, Passenger Rail Agency of South Africa, VSL International Limited, Auckland Council, Taoyuan Emerging Markets: The Public Private Partnership Office of Bangladesh, Kenya Aerotropolis Corporation, Storstockholms Lokaltrafik, City of Yokohama Airports Authority, Rio Tinto Mature International Markets: Alder Hey Children’s NHS Trust, Arup, Miller Hare, GMJ Design Limited, King’s Cross Central Limited Partnership, The City of © 2014 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 The Context 04 Necessity or opportunity? 06 The Infrastructure 100 08 Methodology 09 Meet the judges The Markets 12 Economic Powerhouses 26 Emerging Markets 36 Mature International Markets 48 Smaller Established Markets Information 58 Index of projects by sector 59 About KPMG 3 © 2014 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. FOREWORD 4 © 2014 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. Necessity or opportunity? James Stewart, Stephen Beatty & Julian Infrastructure is part of the social sectors where change via mobile telephony Vella, KPMG Global Infrastructure conscience. It’s something that we all seem has been revolutionary – and it happened to want, but can’t always agree on what we quickly. Technology not only made the service ouis Armstrong famously saw trees need. Poverty, for example, remains at cheaper and more flexible, it also enhanced of green, red roses too – marvels of desperate levels all over the world and many profits by creating new markets through nature that light up people’s lives and people lack the essential services that others consumer applications. make them joyfully proclaim: “What take for granted. A city might address the Sadly, there is little evidence of this trend La wonderful world”. It’s a timeless song about immediate concern by providing social extending to other infrastructure sectors the present, but also the future and a subtle housing to help the urban poor move out of where assets are expensive, built to hope that each new generation will be better a slum. But is that addressing the underlying a previous generation’s technical standards off than the last. issue of poverty? The same city could take and designed to operate for decades. That’s how we at KPMG feel about Even where change is encouraged, it is infrastructure. We see optimism. We see rarely executed cheaply, swiftly, and without social impact. We see economic value. We great difficulty. see a better world supported by projects that Innovation exists, but infrastructure firms are desperately needed, those that are find technology difficult to adopt. A Chinese opportunistic, and others that are truly “How should we construction firm began creating homes this visionary. Many of the 100 projects across year with a 3D printer, but they are still different global markets listed in this balance economic essentially pouring concrete and fitting publication are a delicate balance of all three houses with traditional materials. No one, for traits. Some projects are operational, others benefit against example, is yet experimenting with graphene are under construction or in the latter stages in commercial projects. This thin, lightweight of development. Yet for those that are still social need, given material made from graphite is strong and only designs and dreams, where should flexible. It also has the ability to conduct heat society focus – on necessity or opportunity? constrained and electricity. Although it has widespread We have to remain realistic in our applications for energy, healthcare and optimism. For that, we see difficult choices, financial construction, you will likely find it in your cell affordability concerns and governments phone long before it’s widely deployed in trying to prioritize limited infrastructure resources?” everyday infrastructure. spend. It’s one thing for leaders to smile for Excellence in infrastructure development is the cameras and cut a ribbon before opening not easily defined. This is our third edition of a new US$200 million children’s hospital. It’s a longer-term view and prioritize a metro the Infrastructure 100, and as with the quite another to approve without ceremony system to connect people to jobs and create previous publications we have produced an a US$17 billion, 10-year plan to repair and wealth over time. Maybe it doesn’t need to anthology of infrastructure projects that upgrade an aging urban water and sewer choose one over the other. Effective mass address excellence through scale, feasibility, system. Society might need both, but few transportation supports economic inclusion, complexity, innovation or impact on society. will cheer (or vote) for the politician who but can society wait ten years or more for We have not set out to define an approves an adequate maintenance budget the impact to be felt? Can our conscience infrastructure utopia – that is for individual for existing infrastructure. deal with the time lag? cities, regions and countries to determine for Political leaders love legacy projects – huge We build infrastructure to change the themselves. We have set out to highlight the economic investments that promise to lay world. It can be good business, but it has to elements of best practice that makes each a new foundation for growth. These projects have a positive impact. How then should we and every one of these projects special, and require big budgets, bold leadership, and balance economic benefit against social need for that we would like to congratulate occasionally an inflated ego. Silvio Berlusconi given constrained financial resources? everyone involved with any of these projects. fell short of his dream to connect Sicily with Without economic growth and the social We hope that you, the reader, find mainland Italy via a suspension bridge across mobility of people moving out of poverty into inspiration in these projects to set about the Strait of Messina, but so too did the middle class, a constrained tax base cannot positive changes in your society. The action Romans (and reportedly Charlemagne). afford necessary investments in water, now sits with you. Is your generation better Unattainable infrastructure mega projects are energy, schools, etc. off than the previous one? Will the next be like former US General Douglas MacArthur’s Cost is a significant barrier. Could better off than yours? old soldiers – they never die, they just fade technology help us spend less on What does your wonderful world look like? away. Or do they? infrastructure? Telecoms is one of the few What can we do to help you achieve it? 5 © 2014 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. THE INFRASTRUCTURE 100 The Infrastructure 100 Mature International Markets Dynamic international economies that are open to a wide variety of private investment opportunities in infrastructure. Westmill Solar Park UK Valley Line Light Rail Transit Stage 1 P3 Project Canada Hinkley Point C Nuclear Power Station UK Eglinton Crosstown Light Rail Transit Canada Priority School Building Programme UK Northern Gateway Pipeline Canada Queensferry Crossing UK Site C Clean Energy Project Canada Alder Hey Children’s Health Park UK George Massey Tunnel Replacement Project Canada High Speed 2 (HS2) UK Ring of Fire Mining Project Canada Tunnelling & Underground Construction Academy (TUCA) UK Legacy Way Tunnel Australia Garden Bridge UK Perth Wave Energy Project Australia Northern Line Extension UK WestConnex Australia King’s Cross Redevelopment UK North West Rail Link Australia A1 ‘Autostrada’ highway (Sparvo Tunnel) Italy Darling Harbour Live Australia Liefkenshoek Railway Connection Belgium Southern SeaWater Desalination Plant Project Australia Energy East Pipeline Project Canada 6 © 2014 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. The infrastructure market is