Episode 1: Introduction to Shaping Infrastructure

Welcome to the inaugural episode of Plenary’s podcast Shaping Infrastructure. In this introductory episode, we’re diving into a big question: What role can infrastructure play in addressing some of our most pressing economic, societal and environmental challenges?

We’re living through a moment of immense complexity and hardship for many people. Rising living costs are putting pressure on everyone. Housing shortages have left many struggling to find a place to call home. Public services are stretched thin. And the impacts of climate change worryingly grow more evident day by day.

In this episode, we’ll explore why governments and the private sector must push past traditional boundaries to create the public infrastructure our future demands.

Host: Plenary Communications and Content Manager Sonia Nair

Guests: Plenary Chair Paul Oppenheim, Plenary Chief Executive David Lamming, Plenary Chief Investment Officer Paul Crowe

Full transcript:

Welcome to Shaping Infrastructure, the new podcast from Plenary where we explore the transformative power of smart, well-planned public infrastructure.  

I’m your host Sonia Nair. In this podcast, we’re diving into a big question: What role can infrastructure play in addressing some of our most pressing challenges? 

We’re living through a moment of immense complexity and hardship for many people. Rising living costs are putting pressure on everyone. Housing shortages have left many struggling to find a place to call home. Public services are stretched thin. And the impacts of climate change worryingly grow more evident day by day.

In today’s episode, we’ll explore why governments and the private sector must push past traditional boundaries to create the infrastructure our future demands.  

Infrastructure is often seen as feats of construction and engineering—bridges, roads, schools, hospitals. But it’s so more than that —it’s the backbone of how we live, work, and connect with one another.

Done right, infrastructure can be a powerful tool to address some of our challenges head-on. But turning that vision into reality? That’s where it gets really complex. 

Paul Oppenheim: “What it’s actually about is people. And good infrastructure is all about people.”

That’s Plenary Founder and Chair Paul Oppenheim. Paul has spent decades in infrastructure investment and development.  

Mr Oppenheim: “And you have to think about the community, you have to think about the users and all of the other stakeholders. You know infrastructure isn’t about contracts and financial models and, whilst all those things are important, ultimately infrastructure is about people. And it’s the people who not only sort of build it, deliver it, but ultimately, it’s about the people who use it and the communities that that infrastructure is going to serve. So I think that for a liveable city and great infrastructure, you always have to be thinking about the people who will use it, and not just this generation, but the next generation as well.”

Plenary’s Chief Executive, David Lamming agrees.  

Mr Lamming: “In terms of what comprises good infrastructure, I think the key is that it has to work for society as a whole and that’s really across all aspects. You know, it has to be functional, it has to sit well with the urban form and connect with people and play a role in how we live our lives. So to me, I think that means it has to be sustainable and that’s financially sustainable, it’s environmentally and culturally sustainable. And it’s got to stand up to the test of time and provide that improvement in the way in which we live our lives over the long-term.”   

Everything we build, from roads to schools to renewable energy grids, serves the people in our communities. And with close to 90% of Australia’s population living in urban centres, creating liveable cities has never been more important.  

Paul Crowe: “And that concept of liveability gets bandied around a bit and really comes back to the quality of life and what are the factors that make up the quality of life of an individual in a city?” 

That’s Paul Crowe, Plenary’s Chief Investment Officer. 

Mr Crowe: “There’s external factors like climate and environment, which we can look to improve, but really it gets down to access to services, education, health. It gets down to the concepts of connectivity, and connectivity with family and with community, and also then access to other activities like arts, culture, entertainment, sport and other opportunities. 

“And that’s what I would say is good public infrastructure and city-shaping because the infrastructure comes in first, or, at worst, in line with the demand, and then the city is shaped around it. So that the infrastructure is not just piecemeal. It’s not in response to issues. It’s actually trying to predict issues and lead the development of the city.”

Cities – whether they’re metropolitan or regional – are the heart of our economy, culture, and daily life, and how we design and develop our cities will determine the quality of life for millions of Australians. 

The new Sydney Metro is a prime example of connectivity in action, seamlessly linking key urban areas and enhancing the city’s liveability by reducing congestion and making travel faster, more efficient, and more accessible. 

<audio clip reporting on Sydney Metro’s opening day>

Mr Oppenheim: “I think certainly in relation to the infrastructure deficit that was identified 20 years ago, we’re starting to see both the roads and, increasingly, the rail infrastructure being addressed. We’ve seen the rollout of Sydney Metro, which is obviously a massive city-shaping transformational infrastructure project. So I think on the rail front, we’re doing a lot more.

“And we’re starting to find that cities are not just about the city centre. Increasingly, we’re creating new city centres, whether it’s in Sydney and the three cities that is Sydney, the Western Sydney Airport, the Western Sydney Airport Metro that’ll link that new piece of infrastructure to the city. It’s all about planning for the long, long-term growth. And I think Australia is slowly getting better at that.”

Mr Crowe: “Sydney Metro was a visionary project of its time around connecting new parts of Sydney to the city centre and then extending that through the city centre to the south to really convert a sort of radial rail system into a more modern-day metro system. And that will change the way that people commute and will change the urban development of the city around that new railway line. So it is a great city-shaping infrastructure project that Plenary has been involved with and is very proud to be involved with.”

David who lives in Sydney was lucky enough to ride the Sydney Metro a month before it opened.

Mr Lamming: “Yeah I think the Sydney Metro project and the opening, particularly of the city section after the success of the Northwest, it’s been amazing. It’s been universally well-received by everybody in the city and beyond. And I think one of the big reasons for that is that it’s truly transformational. The innovation that’s come through that project and the procurement process under the PPP model is quite incredible. It’s the first automated driverless metro system to be to be delivered in Australia. It’s our first harbour crossing since the Sydney Harbour Tunnel opened back in the 1990s and people are seeing the speed and the efficiency and the role that it plays in moving people around, but also the way in which it sits in an urban design context. The stations are magnificent, the artwork is really uplifting, and I think people are really just appreciating, you know, what that project brings. It is a fantastic development for the city and it’s really exciting and improves people’s lives on a daily basis.” 

David taps into an important point – that infrastructure should not only be functional, but beautifully designed as well. Paul Oppenheim learned this firsthand when he was a young infrastructure financier.

Mr Oppenheim: “Beyond functionality, I think infrastructure has a really important role to play, beyond just being efficient but making cities beautiful. And I think that design and architecture are really important parts of infrastructure and making a city more liveable and for people to really enjoy a city.”

But there are challenges as government’s progressively stretched budgets cater to a growing, and ageing, population. This has only become more pronounced with the onset of COVID and the surge in migration in the last five years as Australia plays catch-up. Paul Crowe weighs in.

Mr Crowe: “From an infrastructure point of view, it’s put pressure on health, particularly with COVID exposing weaknesses in our health system, and it’s put a lot of pressure on housing. Those two areas are obviously key parts of the infrastructure debate in Australia at the moment.”

Rather than arguing whether immigration is needed or not, Paul Oppenheim says it’s wise to build infrastructure that meets the needs of a growing, gradually more diverse population.

Mr Oppenheim: “Australia is unquestionably a country of immigrants and our whole economy is built on immigration. And so I think we need to know that, we need to plan for that and we need to accept that our cities are continuously growing, and are going to get larger. And so I think tt’s really incumbent on all infrastructure parties, whether it’s government or the private sector, to recognise that we are in a country that will benefit hugely from immigration, whether it’s economic, cultural, societal. There are huge benefits to immigration. But for immigration to be successful, we need good infrastructure and we need to plan the infrastructure of the future.

“And so I think we will see, increasingly, governments having to look at their procurement models as they start to face the budgetary reality that there is reduced budgetary capacity, but there is still a very high expectation from community for world-class infrastructure. So it’ll be interesting to see how they address that challenge over the next decade or so.”

That’s where private capital comes in, but it doesn’t mean the private sector gets free rein.

Mr Oppenheim: “I think private capital will always have a role. I think private capital will always be able to do things that government can’t do. I think we’ve got a role to play in housing. Housing is a big issue that’s obviously very topical at the moment. But there’s no question that the private sector has a very significant role to play in helping address the housing shortages and the housing crisis.

“I think equally, the private sector has to remember why private capital is being used in the first place. And for me it is, you know, so important that the discipline is there, that the innovation that governments expect, and the communities expect is brought to the table.

“When projects are having difficulties and governments or contractors are struggling for whatever reason, it is private capital’s role to help solve those issues. And I think the active equity model, the active private capital, is essential to ensure that those benefits of private capital and the benefits of public-private partnerships truly are realised.”

Even though the public-private partnership model did originate in Europe, Australia has been at the forefront of innovations in this particular area. But in recent years, regions beyond Asia Pacific have adopted the PPP model on a more widespread level and are successfully delivering much-needed public infrastructure.

Let’s hear from Paul Crowe, who leads Plenary’s overseas expansion efforts, as he discusses the challenges facing the UK and Europe market.

Mr Crowe: “Europe is really turning the corner in terms of infrastructure market. The decade of austerity has come to an end. There’s a realisation of a need for investment in infrastructure and we’re seeing various opportunities of interest around private sector involvement in infrastructure. 

“In particular, though in Europe, the Ukraine war has put a lot more pressure on housing, as there’s been displaced people being moved around Europe and, as an example, into Ireland, where there’s refugees. So that’s put additional pressure on housing.

“The other big issue in Europe and globally, but it’s pointed in Europe, is around energy transition. Again, due to the proximity of the Ukraine war, there is a focus on transition, but also a focus on energy security and a lot of infrastructure investment being talked about to underpin energy going forward for the European market.”

As the Middle East moves away from a reliance on oil and gas, there has been a growing recognition of the need to diversity the region’s economy towards new industries like tourism, manufacturing and renewable energy. Paul Crowe observes that public infrastructure in the Middle East is a growing area of focus.

Mr Crowe: “The Middle East infrastructure challenges are very different to other markets. It’s a newer economy from an infrastructure point-of-view. They are new to public-private partnerships and other models of procurement. And they’ve gone through a phase of where it was really important to deliver the assets and were focused on infrastructure assets and getting them built. And they’re now transitioning to a phase where it’s more starting to head towards delivering the service and looking at what the population needs, where does that service need to be delivered, and to target infrastructure around that service delivery. So it’s been an exciting time to be part of that journey and we’re excited to be established in the Middle East.”

So what then of the way forward? Tackling many of the pressing challenges we face, such as urbanisation, productivity, climate change, and economic inequality, requires a strong focus on thoughtfully planned and well-executed public infrastructure. And the future of critical public infrastructure depends on effective public-private collaboration. By combining the public sector’s vision and oversight with private sector’s innovation and efficiency, we can deliver sustainable, resilient infrastructure that meets the demands of a rapidly changing world.

But as David says, it needs to be meticulously thought-out.

Mr Lamming: “We know that investment in infrastructure is crucial. It drives economic growth. It’s fundamental to the quality of life in terms of what our cities have to offer and the experience of people that live within those societies. I think for us, as a society, it is about identifying the right priorities. It’s about the efficiency of procurement. It’s about ensuring that there are opportunities to innovate and continually try to do things better. And I think, you know, important to all of this is really for us to be able to take a long-term view, you know, a view that’s beyond the political cycle. As we look to create that continual improvement and the benefits that we see flowing from that.”

Thanks for tuning into our inaugural Shaping Infrastructure episode. In future episodes, we’ll explore how the collaboration between the public and private sector works in practice, looking at the real projects that are delivering better outcomes for communities. 

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