SPI President & CEO Mary Scott Nabers
Some Americans may not be aware of something that has become extremely attractive to many sophisticated international investors – large public projects in the United States. The government marketplace has become such an opportunity-rich environment for investors, it is attracting interest from countries throughout the world.
Last week, I moderated a panel at the CG-LA 2015 Global Infrastructure Leadership Forum in New York City. Investment firms, pension fund managers and international banking consortiums were well-represented at the conference. There were also representatives from approximately 20 countries outside the United States.
Investors want to know as much as possible about large public projects related to transportation, water and energy infrastructure. And, with governmental budget constraints and critical infrastructure needs, investment opportunities are plentiful.
One successful program geared toward attracting investment dollars from China resulted in a United States-China Investment Week. The original goal was to “humanize” the investment process by allowing Chinese investors to meet directly with American stakeholders. An offshoot of that program – the 2015 China-U.S. Private Investment Summit – is coming to Austin later this month.
The March 30-April 1 event, which features President Bill Clinton as one of many speakers, boasts a theme of “Two Countries- One Goal.” In addition to the major marketplace interests of China, the summit will also address topics of interest to both nations – education, health care, agriculture, energy and lifestyle and entertainment.
Event organizers expect 50 Chinese investors to attend the summit, along with more than 300 American sponsors, policymakers, entrepreneurs, trade associations, economic development groups and stakeholders. One session during the summit will be held at the Circuit of the Americas Formula One track, and will feature investment discussions led by project sponsors interested in investments from China. Thirty projects in the United States will be featured during the summit.
When the two largest markets in the world come together to discuss investing and partnering on major initiatives, the growing interest in international investment is more than obvious. In 1990, China’s foreign direct investment was approximately $4 billion. By 2010, that amount had increased to $298 billion. The upcoming summit is indicative of a growing trend – one that is definitely worth monitoring.