Adonis welcomed as chair of new infrastructure body

The Pensions Infrastructure Platform, PiP, has welcomed the appointment of Lord Adonis as the chair of the new National Infrastructure Commission, which will advise the government on new infrastructure projects.

PiP chief executive, Mike Weston, commented: “It’s welcome news that government has appointed a chair to head up its new infrastructure commission, which follows the government’s productivity plan.” Weston added that if the commission is to be successful in attracting further pension fund investment in UK infrastructure it must remember that pension funds will only invest in suitable projects. “The Commission will need to encourage the government and the market to structure projects in such a way that it makes sense for UK pension funds to invest,” Weston said.

The PiP has been set up to encourage public and private sector pension funds to work together to invest in infrastructure and eliminate unhelpful competition. It has helped raise over £1 billion from UK pension funds for infrastructure investment, and aims to generate returns of inflation plus 2% to 5% over the long term, with costs capped at 50 basis points.