The Australian Government will need to act quickly and
decisively if the Sydney-based, internationally-operating Global
Infrastructure Hub is going to be a success. The G20 has given the
Hub only a four year mandate to realise its goal of meaningfully
closing the global infrastructure gap. To read more about this,
please see our previous update
The process of setting up the Global Infrastructure Hub has now
been initiated with the recent registration of the Financial
Framework (Supplementary Powers) Amendment
(2014 Measures No. 3) Regulation 2014.
This new Regulation provides the legislative foundation for the
initiative by providing the Government with the authority to form a
company limited by guarantee, which will undertake the activities
of the Global Infrastructure Hub, while also giving to the
Government the power to provide resources and funding for the Hub.
The Australian Treasury will have responsibility for administering
these funds, although the Explanatory Statement for the Regulation
"[t]he Australian Government along with other G20
member countries, non-member countries, international
organisations, non-government stakeholders and the private sector
are expected to contribute to the Hub."
While Treasury is currently responsible for establishing the
Hub, it is expected that the Department of Foreign Affairs and
Trade as well as the Department of Infrastructure and Regional
Development will also play a role.
So what does this mean? The pace at which the Government has
acted to begin implementing the legislative foundations for the
Global Infrastructure Hub is a clear positive. It demonstrates the
Government's intent to back the initiative, to make the most of
its four year mandate and ultimately to have a meaningful impact in
the international infrastructure space. The regulations have also
provided the first legislative statement of the objects of the Hub.
These are contained in table item 21 of Schedule 1B of the
Financial Framework (Supplementary Powers)
These legislative amendments are complemented by other
activities being conducted by Treasury to create the Hub, with the
assistance of Robert Milliner, Senior Advisor at UBS,
"Sherpa" of the recent B20 group, and advisor to the
Australian Government during the G20. It is expected that Mr
Milliner will play an important role in assisting the Hub to define
its relationship with the private sector.
The search for a CEO to manage the GIH is underway, with an
international recruitment agency searching for candidates who are
expected to have both public and private infrastructure industry
experience. Similarly, the process of selecting the Hub's
foundational board of directors has begun, and it is expected that
the Treasury will maintain its relationship with the initiative by
making a direct appointment. The other board members will comprise
of independent directors as well as representatives of other G20
countries, including at least two representatives from advanced G20
economies and at least two representatives from a developing or
emerging G20 economies. Meanwhile, the Assistant Treasurer, The Hon
Josh Frydenberg MP recently identified the Hub as a specific
talking point prior to the Annual Meeting of the World Economic
Forum in Davos Switzerland where he represented the Australian
Government showing the clear intention of Treasury, not to let the
GIH fall out of global consciousness.
For now, however, these legislative changes are an exciting
first step by the Global Infrastructure Hub from its inception at
the G20 towards becoming a living and breathing international body.
It is hoped that as a CEO is selected and board appointments are
made, we will begin to get a real look into how the GIH will
operate to achieve its lofty ambitions.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The TPP could have a significant positive impact on the investment and financial services of Australia and Singapore.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).