ATP has said that Danish pension funds are willing to take on a wide range of risks when it comes to investing in greenfield infrastructure projects but the government should in return ensure a stable and favourable regulatory framework.
Ulrik Dan Weuder, head of infrastructure at Denmark's DKK600bn (€80.5 billion) pension fund, said that most pension schemes in the country are ready to assume risks attached to greenfield infrastructure projects, including the construction risk. He went on to say that if politicians decide in the future to change the regulatory framework in place, then the cost incurred by pension funds could potentially be "very high". "Unfortunately, it has been seen that governments are challenging their own regulatory systems, as has recently been the case in Spain, Italy, Greece and Belgium", Dan Weuder said.
ATP's comments come after the publication earlier this month of a report commissioned by five Danish pension funds – ATP, PFA, PKA, SamPension and PensionDanmark – looking into the funding of public-private partnerships (PPPs). The five schemes, which already set up a working group last autumn to report on the organisation and funding of public infrastructure projects, said they hoped the report would help "pave the way" for new investment opportunities.
Dan Weuder insisted that the report was all about quantifying risk and then defining who was best placed to cover the risk at the lowest cost possible.
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