Cement Energy and Environment

to work. Nevertheless banks have become proactive too. Increased investment activity by multinational and sovereign sources (such as the African Development Bank Group (ADBG)'s Africa50 Investment Bank for lnfras1rructure) is being seen. And this is special because these entities prioritize objectives rather than pure return on investment (ROI) and therefore tend to distort capital market flows and returns. The problem is that increased equity flows are driving competition pushing down the yields that investors can achieve. This means sophisticated and active institutional investors are starting to leverage their experience of pricing risk assessments and implementing operational efficiency to take on a wider range of projects offering higher yields. Potential. Investment choices from green field projects carrying higher levels of development risk to social and health assets are being made depending on expertise and risk perception. The more sophisticated Asian funds are going for the 'frontier markets' such as Myanmar and Mongolia to identify potential investments. This is a welcome change for project owners around the world because learning to manage risk while being in newer areas continuously day in & day out, means despite uncertainty work goes on. As investors gain experience at manafling risk in their investments equity flows will unrestricting surge with rates falling both the developed and the developing world. An important 'Rider' however, is that private capital at right price will only be attracted to markets that create a predictable and stable investment environment. The long term benefit is this shift will permanently alter the dynamics of who takes what risks, when they take the risks and how. It will drive economic growth in the developing world and shore up retirement savings in the mature markets. Clearing the Clogged Pipeline Private funds flow when governments too have stake where former feels insecure. Governments need to move a step further. KPMG feels this has not yet happened and hope coming years will see this becoming true. Perfect the ri sk balance with zero uncertainty is unreal. This reality many governments are starting to recognize and focus may shift to the larger goals of economic and social prosperity. Governments have to understand get-ting projects delivered to realize long-term economic and social benefits thereof is more important than minimizing risk or perfecting contract variables. Earlier too thi rd world economies have realized this and this trend could be expected henceforth as well. Yes, the reference being made is to an 'activity catalyzed 25 years ago' in certain Latin American markets which, for example, led to Chile's highly-successful toll road con-cession program in the late 1990s and early 2000s (See Figure 8) The reality is that the private sector is looking for commercial returns, whereas government is seeking to achieve long-term economic benefits and other national objectives. No more 'Rule of thumb' for 'Asset management' As infrastructure managers are looking for a 'cent percent' utilization of existing assets before buying new assets by maximizing the performance of the existing assets and gain from full potential of their investments. Technology, including the use of data/analytics, has helped a great deal in the sophistication of asset management by ensuring that no longer decisions are made on 'rules of thumb' ; today technology enables asset managers to monitor in real time their assets in real time and, so all downstream decision making improves maximizing system efficiency. The pre- dictive data/analytics enables shift from 34 ..