ABSTRACT
Project finance activity has recently made a marked recovery in Australia. The sector is experiencing a period of growth driven not just by the resources boom but also by social and economic infrastructure projects. According to Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), the commodities attracting the most investment are oil and gas, iron ore and coal and associated infrastructure, which collectively account for around 92 per cent of all committed capex. Public private partnerships (PPPs) continue to play a significant role in financing Australian infrastructure. Australian economic infrastructure projects are usually very large in scale and so tend to dominate the project finance market. The Federal Government has recognized the important role Australian superannuation funds and private investors in funding infrastructure, with significant tax incentives announced in the Federal Budget. Liquefied natural gas (LNG) projects currently underway include: Gorgon LNG; the Ichthys LNG Project; Wheatstone LNG; Woodsides Pluto Project; and the Browse LNG Project.
