The Civil Engineering Contractors Association (CECA) has welcomed the news that British pension funds are planning to launch a multi-million pound fund to invest in the infrastructure projects highlighted in last year’s National Infrastructure Plan. But the need for funding is now urgent, it said, and warned that the new fund must be introduced no later than its planned January 2013 launch.
The Pension Protection Fund and the National Association of Pension Funds are in discussions to create an investment vehicle of up to £4bn specifically tailored to invest in UK infrastructure. However, this is just 2% of what is needed. According to the National Infrastructure Plan, the UK will need £200bn of investment over the next five years to meet its infrastructure requirements.
CECA director of external affairs Alasdair Reisner said: “CECA welcomes the news that British pension funds are planning to invest in much-needed upgrades to the UK’s infrastructure. We have long championed the need for innovative funding solutions for infrastructure projects, and as such the news of this planned fund is a welcome step in the right direction.
“However, as the Chancellor outlined in last year’s National Infrastructure Plan, the UK requires a step change in levels of infrastructure financing if it is to meet its projected needs. As a majority of this investment needs to come from the private sector, CECA welcomes any move that facilitates these avenues of funding, and would like to see progress in this regard.
“It is imperative that this fund is implemented no later than the planned start-date of January 2013. Any delay will hold back the vital role infrastructure contractors can play in rebuilding the economy.”
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