10 LEXPERT
|
2017
|
WWW.LEXPERT.CA
ONE OF THE PRIMARY OBSTACLES preventing developing coun-
tries from growing more quickly is the lack of Infrastructure. Some 2.5 bil-
lion people in emerging economies do not have access to basic sanitation, ac-
cording to the United Nations. About 2.6 billion have only limited access to
electricity. Roads and telecommunication networks are also sorely needed. It
goes without saying that this pent-up demand represents a huge opportunity
for construction companies, banks, engineering firms and others involved in
the creation of Infrastructure.
But players are moving cautiously, especially in Canada. Part of the reason,
says Erik Richer La Flèche, a partner at Stikeman Elliott LLP and co-head
of the firm's Infrastructure group, is that there's plenty of work in North
America and Europe. Canadian Infrastructure companies are well regarded
around the world aer a string of successful public-private partnerships in
British Columbia and central Canada, and for the time being their order
books are full.
Plus, companies recognize that getting established in emerging markets
involves a steep learning curve, says Richer La Flèche. Firms hoping to move
PHOTO:
SHUTTERSTOCK
TAKING A CHANCE ABROAD
Companies looking
to bid on emerging
market P3 projects
must take care.
But while the legal and
regulatory risks are
significant, the
rewards may be
even greater
EMERGING MARKETS
By John Greenwood