The demand for infrastructure projects will increase in the future, requiring big money, even in a recession. The private sector involvement that will be needed is already taking shape in the form of a growing number of infrastructure funds. Governments around the world are facing up to an unpalatable truth: that infrastructure is absolutely critical but extremely expen-sive. Organisation for Economic Go-operation and Development (OECD) countries are saddled with ageing and out-of-date infrastructure at the very time that public finances are becoming increasingly tight; and developing nations are discovering that infrastructure bottlenecks are the single biggest constraint on economic growth. The amount of investment needed is mind boggling. In the US, the American Society of Civil Engineers forecasts that $1600bn needs to be invested in US infrastructure during the next five years. A report from investment bank and brokerage CLSA forecasts that China needs to spend $1200bn on infrastructure in the next five years.
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