Australia infrastructure changes may reduce role of PPP as inflation payers

Private sector calls on Australian government to underwrite payments for PPP projects

Private sector consortia bidding for infrastructure projects in Australia are increasingly asking state governments inviting public-private partnerships (PPP) to underwrite payments over the life of the concession. That is because their appetite for demand-risk under the traditional user-pays principle has fallen significantly. At the same time, state governments are also showing a preference towards paying the concessionaire fixed-financing structure, instead of linking their payment to the