KPMG: government effectiveness and financing stalling infrastructure projects

Infrastructure projects mainly stall because of a lack of government effectiveness and financing, according to a survey commissioned by KPMG. Some 56 percent of respondents cited lack of funds as the largest obstacle to infrastructure development. “While stimulus spending was a first step, many government officials are clearly telling us they need a long-term infrastructure investment strategy to meet the needs of their country,” said Bill Bowman, deputy senior partner at KPMG Romania. “Modernizing the world’s infrastructure will require massive investment and cooperation by the public and private sectors for many years to come. But those countries that find ways to make the necessary infrastructure investments now are likely to be the leaders of tomorrow.”

Bowman added: “In Romania, inadequate infrastructure is a problem. Many investors and business associations have pointed out that this is a real impediment to investment in this country, and hence an obstacle to sustained economic growth. The transport network is but one example – Romania still has few motorway kilometers and to drive across the country you have to use two-lane roads. The railway system can be slow and not always reliable. Romania’s infrastructure does not compare well not only with Western Europe, but also with other Central and Eastern European countries, such as Croatia and Hungary.” The politicization of priorities and lack of urgency were also cited as impediments.

Corina Saceanu