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Delivering infrastructure programme success in inflationary times

How can government infrastructure programmes deliver long-term economic, environmental, and societal benefits in the face of significant threats from inflation?

Around the world, persistently high inflation poses a significant threat to government infrastructure programmes. But rather than cancelling or postponing programmes based on cost rises, governments can follow several important steps to ensure that the intended gains for communities are realised in the timeframes needed.

To catalyse growth and deliver long-term benefits, government infrastructure chiefs should consider the following:

  • Smart prioritisation of projects based on long-term outcomes
  • Quantifying affordability and value for money to align with current realities, and update assumptions and targets throughout key project stages
  • Dynamic view for full lifecycle costing, incorporating uncertainties and focusing on long-term results
  • Contract management refining to reflect macroeconomic impact on existing obligations and forward-thinking risk approach in new contracts

By building in smart cost-management and deep value creation, infrastructure decisionmakers can position themselves to meet both the immense challenges of today and the powerful growth opportunities on the path ahead.

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