The current discourse on infrastructure focuses on the amount of funding needed for its creation. While the talk about the need for funding is essential, to indeed create more funding for infrastructure, the infrastructure ecosystem itself needs to start focusing more on “revenues”.
“Revenues” here mean the returns the infrastructure assets will generate to compensate the investors for the risk undertaken. Essentially, revenue generating mechanisms and greater clarity amongst investors on the revenue generating mechanisms that will create the cashflows to deliver investment returns are the keys to unlocking funding. In finance parlance, the discussion needs to focus both on the quality and the quantity of the cash flows from the infrastructure assets.
To move towards greater clarity on revenue generation, a clear catalogue needs to be created where all infrastructure assets required are broadly classified under three categories. Read More