BESTGEN

Built Infrastructure Investment

Beyond the extraction of rare Earths, Minerals and Fossil fuels, investment into infrastructure can be a dark and cumbersome task to calculate and visualize. Investment criteria usually falls at at the hands of stakeholders to identify, quantify and value the asset before resources are committed for extraction, refinery and distribution.

With a tangible physical asset that can be assessed to degree of accuracy using technology and “know-how”, it is easier to directly assess the potential financial rewards (Return of Investment) that such a project could entail in comparison to the ROI of social economic infrastructure such as a water and sanitation system, urban transportation or new airport for example.

The longer termed nature of such projects which include much longer operation phase than most extraction projects creates a steady financial return that will accelerate with the surrounding economic activity and factors like job creation, health improvements and economic stimulation.

Investment in transport for example is a key driver of economic growth, connecting workers to better jobs and contributing to productivity. Improved transport connects people to work, education, and healthcare, which is especially important for lower-income workers and service-sector employees. Improving bus transport for example can stimulate ROI of 1 : 4.55, that is for every $1 spent on bus services and infrastructure, $4.55 will be returned for the investor, 455% return if expressed in percentage. The urban rail infrastructure provides similar returns

Comparing this to an attractive extractive industry such as gold mining for example, through the end of 2024, Gold had posted a 20-year average annual return of 9.47%. If you had invested $10,000 at the start of this period, you’d have $65,967 in your account, a total gain of roughly 560%.

The secret to the success of social and economic infrastructure projects is to oversee the perceived lack of immediate solid financial returns. The operational phase is key, similar to the gold refinery process that takes years to process from being raw material that was excavated or exploded out from the ground to the fine shining bullion that sits in a safe vault or at a jewelers – the process takes time to create the end product.

Major infrastructure projects can represent once-in-a-lifetime regeneration investments, and opportunities to enhance the employment prospects and skills of disadvantaged or marginalised members of society who might otherwise be excluded from the labour market. In rural areas, access to infrastructure can provide a lifeline to key services.

The end product of building social infrastructure, is a mass amount of people using your service at an affordable rate which if conducted correctly can reap massive financial rewards both short and long term whilst simultaneously providing social value .