In recent years, Western Australia has become a major hub for private investment in infrastructure projects. With a growing population and increasing demand for services, private investment in infrastructure is becoming increasingly important in helping the State meet its needs.
The WA Government has several mechanisms to support the approvals process for private infrastructure process to be clear and streamlined, where possible – including the Lead Agency Framework and Streamline WA. In the government’s Foundations for a Stronger Tomorrow – State Infrastructure Strategy (SIS), it has committed to providing more certainty for private sector investment by developing and implementing a shared-use policy framework and practical guidelines for multi-user infrastructure corridors and facilities.
As outlined in the SIS, the State Government will facilitate and prioritise private investment for infrastructure projects in key industrial sectors.
Energy and green hydrogen
The WA Government has actively been engaged with the renewable energy and green hydrogen industries. The SIS identified the government’s commitment in ensuring regulatory, planning and approval systems are not an impediment on investment. Private investment for projects that help reduce the State’s carbon emissions and work towards its net zero by 2050 target, while maintaining safe, secure and affordable energy supply for WA households and industry, are likely to be strongly supported and facilitated by the WA Government. As such, it has committed $22.5 million to fast-track approvals for green energy proposals.
The government’s support of the green hydrogen sector has led to it being one of the fastest growing areas of infrastructure investment in WA. The government has recently committed to investing in green hydrogen projects in various regions, with a range of projects already underway. These projects will help to reduce WA’s carbon emissions, while also creating thousands of new jobs.
WA is also home to various major energy projects, such as the construction of new gas pipelines, wind farms and solar farms.
Waste management
The WA Government has committed for the State to become a sustainable, low-waste, circular economy. To enable this, as outlined in the Waste Avoidance and Resource Recovery Strategy 2023, private investment in WA’s waste and recycling sector infrastructure will be a key part, and will be encouraged by government.
The SIS highlighted the important role private investment, in coordination with government agencies and enterprises, can play to facilitate and accelerate WA’s transition to improved waste management through investment in modern infrastructure and services, delivery of new technologies and innovative policy.
Each year in Australia, materials worth hundreds of millions of dollars are lost to landfill. As WA becomes a circular economy, investment in high-performing waste and recycling systems infrastructure – that recovers, reuses and recycles these materials – can reduce this impact and have the potential to harness economic value.
Housing
There is a growing need for housing infrastructure, with a current imbalance between demand and supply. As part of the WA Housing Strategy 2020-30, the Department of Communities (DoC) has looked to the private sector to help it achieve its objective of providing new sustainable social and affordable housing opportunities in Perth and the regions, particularly through infill developments of up to 30 dwellings. DoC has invited property developers and investors to submit proposals for consideration that represent value for money, achieve sustainable development outcomes, and are innovative and well-designed. Social and affordable housing is an ‘impact investing’ opportunity that can contribute to investors’ environmental and socials governance (ESG) strategy.
The WA Government has also encouraged development and investment in the State’s housing sector through the Infrastructure Development Fund. This fund aims to assist in resolving infrastructure constraints that impact the supply of medium to high density housing projects in priority infill locations with metropolitan Perth and worker accommodation in the regions.
In the metropolitan area, new housing development will promote urban construction, housing diversity and activation around priority infill locations, such as METRONET station precincts. In the regions, housing development in locations where employment levels are high, housing availability is low will support ongoing economic development and the prosperity of regional communities. An additional two funding streams have been designed to address infrastructure constraints in the water, wastewater and electricity network, for both metropolitan medium to high density development and regional worker accommodation.
Cultural infrastructure
The State Government has prioritised private investment in cultural infrastructure as part of the Western Australian Cultural Infrastructure Framework 2030+. Cultural infrastructure includes the buildings, places, spaces and technology necessary for arts and cultural education, creation, production, engagement, collaboration, ceremony, preservation, conservation, interpretation, sharing and distribution.
The government will particularly support investments that contribute toward community benefit – for the development of creative hubs and other cultural infrastructure. It has acknowledged that leveraging from private investment would help meet priority needs to greater support the capacity, growth and sustainability of the art, culture and creative sectors.
The range of investment options in WA infrastructure is perhaps the most diverse than any other sector. Whether it be investing in sustainable energy such as green hydrogen, essential services like waste management, or social and cultural sectors, investors have several options at their fingertips.