G20 to set up Global Infrastructure Hub
Brisbane: The G20 leaders today decided to set up a Global Infrastructure Hub to help reduce barriers to investment and improve information sharing for channelizing funds into the sector.
Located in Sydney, the Hub will contribute to developing a knowledge-sharing platform and network between governments, the private sector, development banks and other international organisations.
"The Hub will foster collaboration among these groups to improve the functioning and financing of infrastructure markets," said the communique released at the end of two day G20 meeting here.
"With a four year mandate, the Hub will work internationally to help countries improve their general investment climates, reduce barriers to investment, grow their project pipelines and help match investors with projects," according to Australia, which holds the G20 Presidency.
The B20, a grouping of business leaders of G20 nations, have estimated that the Hub could help unlock an additional USD 2 trillion in global infrastructure capacity by 2030.
Countries like the United Kingdom, China, Saudi Arabia, New Zealand, Korea, Mexico and Singapore have given their financial commitment for establishing the Hub.
"The Australian Government will be a major contributor to the Hub with other contributions coming from G20 members, non-member countries, international organisations, non-government stakeholders and the private sector," Australia said in a statement on the G20 website.
Stressing on the need for global investment in infrastructure to boost growth and job creation, the G20 said it will work with the multilateral lending agencies and encourage national banks to provide additional lending to the sector.
India's infrastructure sector will require an estimated USD 1 trillion in 12th Plan period ending 2017 and half of it is expected to come from the private sector.
Leaders of the world's 20 developed and emerging economies today vowed to boost global GDP by over USD 2 trillion over next five years by investing in infrastructure and increasing trade.
The G20 nations comprise rich and developing countries, including India.