The Institute for Infrastructure Studies (I.I.S) an international UK & Middle East-based think tank, founded by infrastructure project delivery firm British Consulting (BC), will be based in Doha and London and is supported by the Qatar Financial Centre Authority (QFC Authority).
Her Majesty’s Ambassador, Michael O’Neill CMG and Boris Johnson, the Mayor of London, joined more than 50 senior officials from the Qatar, London and wider Gulf financial community and key players in Gulf government circles, at the launch.
Many have expressed considerable interest in supporting the non-profit Institute in its initial five-year plan to provide original thinking and research into the appraisal and better management of risks associated with large, complex infrastructure programmes.
“This Institute will tackle public and freight transportation systems, ports, social infrastructure and stadia and we look forward to working with and for governments, financial and investment institutions and sponsors of large complex projects to find practical solutions to the funding and management of this increasingly desirable asset class. Until now, there has been no independent organisation focused exclusively on researching the problems of infrastructure project delivery, risk appraisal and funding in order to develop new practical methodologies,” Ian Kennedy, co-founder and director of the Institute, said.
Qatar, as a joint host of the institute, is positioning itself as the ‘Washington of the Middle East’ for infrastructure funding and is well placed to personally benefit from the research. The country is in very close proximity to a large number of projects within a larger government sponsored infrastructure programme, while the Qatar government has allocated 40 percent of its budget between now and 2016 to fund a string of mega-projects. Among these is $5.5 billion for a deepwater seaport, $20 billion for roads and a $17.5 billion new airport. It also aims to build a $36 billion metro in Doha that will link stadiums for the 2022 World Cup soccer tournament, as well as a 490 kilometre (305 mile) rail line linking Saudi Arabia and Bahrain through Qatar as part of a planned regional network.
Kennedy added that governments world-wide have seized the idea that investment in infrastructure is the single most effective policy option available to them to stimulate their economies. “Yet the forecast global expenditure of $50-70 trillion over the next 17 years may suffer from huge constraints in the availability of finance as investors become more risk averse in the face of costly project delays that impede achievement of the very social objectives they set out to facilitate,” he said
The Institute will provide original research, commissioned studies, conference and workshop events and a data centre/library that will act as the global point of reference. The main elements of the institute, a library and research staff will be located in Doha, within the QFC Authority.
The centre’s database of project information will provide investors, lenders and insurers with a new, consistent risk evaluation methodology. It will monitor and publish reports on emerging trends in finance, programme management and project performance.
“Financial restrictions and an elevated risk to project completion is not an attractive combination and conventional thinking about infrastructure development has failed to provide solutions to these problems. Governments, public sponsors and private investors need an independent and authoritative source of knowledge and expertise to evaluate complex projects. The institute will serve academics and practitioners involved in the fields of infrastructure financing, development and delivery,” Anthony Holmes, chair of British consulting and the joint founder of the IIS with Kennedy, added.
The Mayor of London has meanwhile put his full support behind the institute.
“The birth of the Institute for Infrastructure Studies is a great example of how London and Doha can work together towards common goals by sharing vital knowledge and industry expertise. Any organisation that can provide the insight and the know-how to reduce costs and help speed up the delivery of landmark projects has to be warmly welcomed. So, I’m delighted to wish everyone at British Consulting the best of luck as they get this fantastic new initiative underway,” Boris Johnson who is visiting the region to strengthen business and cultural ties between the UK’s capital city and Qatar and other key markets in the Middle East, said.