Infrastructure can be defined as the “facilities, structures, equipment, or similar physical assets that are vitally important, if not absolutely essential, to people having the capabilities to thrive as individuals and participate in social, economic, political, civic or communal, household or familial, and other roles in ways critical to their own well-being and that of their society, and the material and other conditions which enable them to exercise those capabilities to the fullest” .
Infrastructure projects can be divided into two main categories:
Contains roads, rail, air transport, ports, bridges, drainage systems, sewage treatment plants, telecommunications networks and power.
It includes facilities related to education, hospitals, prisons, tourism and recreation.
Its importance lies in the fact that it plays a key role in attracting foreign investment and supporting the stability, productivity, development and prosperity of a nation. As an example, the US Accounts Committee acknowledged that continued reductions for a period of 20 years in the US highway investment could cause 3,5% reduction in GDP, an 8% increase in inflation and a 2,2% increase in unemployment .
Beeferman, L., and Wain, A. (2012) Infrastructure: Defining matters. Pensions and Capital Stewarship Project, Labor and Worklife Program, Harvard School of Law, University of Harvard, Massachusetts, United States.
Ng, A., and Loosemore, M. Risk allocation in the private provision of public infrastructure. International Journal of Project Management 25 (2007) 66-76.