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infrastructure

Developing local capital markets to fund domestic long-term financing needs

Ceyla Pazarbasioglu's picture



Finance fuels economic growth and development. Yet, it is also clear that traditional funding sources – public finances, development assistance or banks loans – will not be sufficient to finance the Sustainable Development Goals.

Both developed and developing countries are turning to capital markets to find new sources of funding and to attract private sector financing, investment and expertise.

A key priority for the international development community is to unlock adequate private sector financing so that emerging market countries can meet their financing needs to fund strategic objectives, such as improving infrastructure.

We estimate that the amount of infrastructure financing covered by the private sector could be more than doubled, if countries harness the full potential of local capital markets.

At the World Bank Group, we are committed to marshal our expertise to increase the use of capital markets for investment financing. Helping countries develop government debt markets is vital to our goals of eliminating extreme poverty and boosting shared prosperity.

Start listening: A pulse on the infrastructure conversation on social media

Pranya Yamin's picture



*A version of this post was originally written for KPMG's Insight Magazine. The content/data has since been updated for this blog post.

Social media is both a driver and an enabler of change. It is beyond simply a broadcasting platform, and individuals and organizations that recognize this are the ones that are truly able to harness its power. Social media drives conversations about infrastructure; it amplifies social reaction and sentiment; it encourages transparency and empowers individuals. Simply put, social media should not be ignored. So here is what you need to know.

Global Infrastructure Forum maps out route towards delivering sustainable infrastructure

Amal-Lee Amin's picture



Last Saturday, tens of thousands of people gathered on the Washington D.C. mall for the March for Science alongside hundreds of sister marches around the world to coincide with Earth Day. Climate change and environmental protection were high on the agenda as the planet continues to warm and countries confront an increasing number of extreme weather events.

Meanwhile, down the road at the Inter-American Development Bank (IDB), the 2017 Global Infrastructure Forum was in full swing, discussing how to deliver inclusive and sustainable infrastructure to ensure we achieve the objectives of the Paris Agreement and the Sustainable Development Goals (SDGs).

The Global Infrastructure Facility: Closing the infrastructure gap by building country capacity

Henrique Pinto's picture


Photo: paulisson miura | Flickr Creative Commons

It is well-established that the lack of infrastructure is one of the main problems facing developing countries. Good infrastructure is one of the most important drivers for development and competitiveness. The question that follows is straightforward: how can we mobilize private financing for high-quality infrastructure investment in these countries?
 

New from the PPP Knowledge Lab: The Public-Private Partnership Reference Guide online

Olivier Fremond's picture


The Public-Private Partnership Reference Guide has been downloaded more than 18,000 times since it was first launched in 2012. The Guide’s popularity reflects its value. The Guide offers:
  • A solid overview of the core elements of public-private partnerships (PPPs); and
  • A rich collection of references to the best-available PPP-related materials.
The 3rd version of the PPP Reference Guide has just been published. Like its predecessors, it provides in-depth coverage of PPP basics, the PPP framework, and the steps involved in the PPP process.
 
This version, however, offers several additions and improvements that add greater value to PPP practitioners:  The Guide also includes numerous examples and case studies that shed light on PPP issues in different sectors and regions.
 
Going forward, we will publish monthly posts that highlight specific sections of the Guide, illustrating how seasoned practitioners and novices alike can use it to strengthen their knowledge of PPPs and apply it to real-world developmental challenges.

India’s Tryst with PPPs: The High, The Low… and The Revival?

Sri Kumar Tadimalla's picture
For a considerable period of time, on the score of mobilizing infrastructure investments through private participation among developing countries, India ranked 1st in Energy and Transport sectors.


In several economic infrastructure sectors, India enjoyed a strong track record of harnessing Public-Private Partnerships (PPPs). Private sector investments in infrastructure more than tripled from the 10th Plan Period (2002-07; INR 2 trillion) to the 11th Plan (2007-12; INR 7.3 trillion). Between these plan periods, private sector share in infra investments increased from 22% to 38%. For a considerable period of time, on the score of mobilizing infrastructure investments through private participation among developing countries, India ranked 1st in Energy and Transport sectors and 2nd in Telecom (behind Brazil).
 
This erstwhile success of India’s PPP program is attributable to well-crafted reform efforts by the government, and ably executed by the private sector, banks and other financial intermediaries. Following the economic liberalization initiated in the early 1990s, the government has created an enabling environment for private participation through several sector-specific and cross-sectoral initiatives, e.g., relaxing entry norms, tax concessions, independent regulation in telecom and power, mobilization of additional revenues through tolls and cess on fuel, establishment of a viability gap fund mechanism and India Infrastructure Financing Company Limited, etc.  The financial intermediaries, too, quickly moved up on a steep learning curve to cater to this new and challenging mode of delivering infrastructure services. Private sector responded enthusiastically and seized these opportunities to develop their own capabilities and progressively build larger and complex projects. Today, private sector operators are serving more than 90% of the mobile phone users, owning ~40% of the power generation capacity, built and operating a substantive portion of arterial network of national highways, besides world-class airports in four metros and container handling facilities at many ports.

How MDBs are raising their game on infrastructure development

Clive Harris's picture



One year ago, the multilateral development banks (MDBs) came together for the very first time to kick off a new approach to addressing infrastructure development. The Global Infrastructure Forum, an outcome of the Addis Ababa Action Agenda on Financing for Development, offered a platform allowing governments, MDBs, United Nations agencies, and other developmental partners to mobilize resources for infrastructure development.
 
This year, the Global Infrastructure Forum 2017 will be held on April 22nd in Washington D.C. Besides improving coordination, the Forum aims to stimulate infrastructure investment by both the public and private sectors and support implementation of infrastructure projects in developing countries.
 
Why is this important? Because the Forum brings all major players in infrastructure development to the same table around four key themes:

Success factors in Turkey’s Elaziğ healthcare PPP

Matthew Jordan-Tank's picture

Editor's Note: Join us April 22nd at 10AM ET for the 2017 Global Infrastructure Forum when the Multilateral Development Banks (MDBs), the United Nations, the G-20, and development partners from around the world meet to discuss opportunities to harness public and private resources to improve infrastructure worldwide, and to ensure that investments are environmentally, social and economically sustainable. Check out the event site to view the livestream on April 22.



Imagine the difficulty of designing, financing, building and operating a €360 million, 1,000-bed hospital campus that serves a region of 1.6 million people? This is exactly what the government of Turkey is doing in Elaziğ, a city of 350,000 in eastern Anatolia. The facility will serve and accommodate about 20,000 patients and their relatives per day with a broad range of services including women and children’s health, psychiatric services, and a dental clinic.
 
A project of this size is bound to be challenging and complex. But the approach taken by the Turkish Government has been a success—to involve a private-sector partner through a public-private partnership (PPP) with support from multilateral development banks. How did they do it?

The Global Infrastructure Facility: fulfilling its mission

Akihiro Tsuchiya's picture

Editor's Note: Join us April 22nd at 10AM ET for the 2017 Global Infrastructure Forum when the Multilateral Development Banks (MDBs), the United Nations, the G-20, and development partners from around the world meet to discuss opportunities to harness public and private resources to improve infrastructure worldwide, and to ensure that investments are environmentally, social and economically sustainable. Check out the event site to view the livestream on April 22.




Nearly two years ago, the Global Infrastructure Facility, or the GIF, began its mission to develop bankable, sustainable infrastructure projects in developing countries that are attractive to investors. Being a partnership of multilateral development banks, private sector partners, donors and beneficiary countries, we have the knowledge and resources to make that happen.
 
It has been my honor, as the representative from Japan, to serve in the last year as co-chair of the GIF’s Governing Council together with the World Bank. As my term draws to a close, I would like to reflect on our accomplishments and share some observations with those who believe that developing infrastructure is a key element of reducing global poverty.

Matching institutional investors and infrastructure investments

Morten Lykke Lauridsen's picture

Editor's Note: Join us April 22nd at 10AM ET for the 2017 Global Infrastructure Forum when the Multilateral Development Banks (MDBs), the United Nations, the G-20, and development partners from around the world meet to discuss opportunities to harness public and private resources to improve infrastructure worldwide, and to ensure that investments are environmentally, social and economically sustainable. Check out the event site to view the livestream on April 22.



This post was originally published on the International Finance Corporation's Medium channel.


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