By Matthew Burgess and Alyssa McDonald
me of Asia’s biggest infrastructure investors are seeing plenty of opportunities in India. In China’s mammoth Belt-and-Road initiative, however, not so much, Bloomberg.
President Xi’s vision, first proposed in 2013 and now enshrined in the Communist Party’s constitution, involves spending as much as $1.2 trillion on railways, roads, ports and power grids over the next decade, according to Morgan Stanley. The intent is to open new business opportunities for domestic companies and extend China’s reach — even though the route cuts through multiple conflict zones and some of the world’s most corrupt countries.
Still, India poses its own challenges, said Cyril Cabanes, head of Asia Pacific infrastructure transactions at Caisse de Depot et Placement du Quebec, Canada’s second-biggest pension-fund manager. He says the opportunity is clear, but the deals are slow to come.
“The size of the market is well known, but the velocity of deals coming to market and getting done has been generally fairly low,” he said. “It’s not just about putting capital in, it’s about generating returns and then moving on to the next opportunity, which India hasn’t quite graduated to.”