Canada has surpassed the United States, emerging as the “most attractive market for infrastructure investment,” according to a survey of leading investors in the sector.
Global Infrastructure Investor Association’s recent poll places Canada at the top of its rankings, thanks to a series of recent announcements by the Canadian government.
This comes after Prime Minister Mark Carney ’s government made clear commitments to strengthening and expanding Canada’s core infrastructure, it said in a press release.
“Canada is making all the right noises when it comes to its intentions to attract private capital into building, maintaining, and improving the nation’s infrastructure — with ambitious goals for how and where it will raise this capital,” said Jon Phillips, the association’s chief executive.
Canada surpassed European economic powerhouse Germany, which now sits in second place in the rankings, as well as the U.S. for the first time.
Phillips said his group works with Canadian infrastructure investors all over the world, who have been some of the most active in the sector for decades. Just two years ago, Canada made up only three per cent of capital deployed by its members, but “it appears that is certainly about to change,” he added.
The group said its members, who manage nearly $3 trillion in infrastructure assets combined, are surveyed on a bi-annual basis to gauge sector attractiveness, challenges and deal flow across the world’s biggest infrastructure markets.
One of the association’s large-scale investor members noted Canada currently appears to be “having a moment” within the world of infrastructure and major national projects, it said.
The report highlighted Carney’s ‘Nation Building’ program and his government’s announcement of a new sovereign wealth fund, which will partly be used to co-fund infrastructure projects alongside private-sector partners. The government initially committed $25 billion over three years for the fund.
“Our latest survey of members has clearly shown that recent announcements are creating global interest,” said Phillips. “If the government can continue to send clear policy signals like reforming airport governance and nuclear innovation, they can convert this investor interest into real deals and capital flow.”
Canada is also looking to attract foreign investors, with a stated aim of raising $1 trillion in new capital from external sources, and the first-ever Canada Investment Summit kicking off later this fall, the report said.
Much of the capital would be generated in the prospect that Canada will privatize some of its major airports, it said.
It added that the country’s intention to become a nuclear-led energy superpower is also an attractive notion, and by working with experienced infrastructure investors, Canada can manage costs, speed up deployment and reinforce its global leadership in clean energy.