Definition

CP2’s definition of an infrastructure asset encompasses the following characteristics: 

• The asset should provide an economic benefit to society.
• Cash flows are predictable.
• Demonstrated pricing power and pricing regulation.
• Overlaid on this is a jurisdictional review to ensure appropriate strength of property rights and legal framework.

In 1998, CP2 refined the definition of infrastructure and brought clarity to the sector when we defined the sub markets. This definition has gone on to become an industry standard.

	Each of the subsectors has different investment characteristics which affect the nature and risk of expected cash flows.
©1998 CP2 Limited