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infrastructure

Boosting access to market-based debt financing for sub-national entities

Kirti Devi's picture



Many countries are experiencing urbanization within the context of increased decentralization and fiscal adjustment. This puts sub-national entities (local governments, utilities and state-owned enterprises) in the position of being increasingly responsible for developing and financing infrastructure and providing services to meet the needs of growing populations.
 
However, decentralization in many situations is still a work in progress. And often there is a mismatch between the ability of sub-nationals to provide services, and the autonomy or authority necessary to make decisions and access financing—often leaving them dependent on national governments. Additionally, they may also contend with inadequate regulatory and policy frameworks and weak domestic financial and capital markets. 

Forecasting infrastructure investment needs for 50 countries, 7 sectors through 2040

Chris Heathcote's picture


The Global Infrastructure Outlook is a landmark country-based online tool and report developed by the Global Infrastructure Hub with Oxford Economics, which forecasts infrastructure investment needs across 50 countries and seven sectors to 2040.

Although there are already forecasts for infrastructure investment in the market, the public and private sectors indicated their need for fresh, country-level data. Outlook was created to meet that knowledge gap.
 
For the first time we have data about what each country needs to spend in each sector, and importantly – the gap between what needs to be spent and current spending trends.

Declining private investment in infrastructure – a trend or an outlier?

Clive Harris's picture



We’ve just released the 2016 update for the World Bank’s Private Participation in Infrastructure (PPI) Database and it makes for some gloomy reading. Investment commitments (investments) in infrastructure with private participation in Emerging Markets and Developing Economies (EMDEs) fell by a whopping 37% compared to 2015. 

The 24 Schools PPP in Greece: a lesson in perseverance and innovative funding

Nikos Mantzoufas's picture


An artist’s interpretation of the Attika Schools PPP Project in Greece, which reached financial close in Q2 2014
(Photo: World Fianance)

In 2014, the 24 Schools Public-Private Partnership (PPP) project in the wider Athens area marked the reopening of the Greek PPP market and was only the second PPP project to reach financial close in Greece. 

It aimed to address the existing quantity and quality need for schools, covering 6,500 students in 10 municipalities who came from diverse socio-economic backgrounds in the historical region of Attica, which encompasses the city of Athens. Benefits included the timely and enhanced delivery of schools to improve educational outcomes, better maintenance through the lifetime of the project, the highest service standards, the response to user needs, and significant savings in energy cost.

Evolving infrastructure models in the UK -- one step forward, two steps back?

Michael Walker's picture


Photo: Jonathan Meddings | Flickr Creative Commons

The United Kingdom has been a leading player in the development of Public-Private Partnerships (PPPs) since the inception of the Private Finance Initiative (PFI) in the early 1990s. PFI is a structure that introduced project finance into UK public services for the first time. Under PFI, a private sector consortium builds public assets and services them over a term of 25 to 30 years in exchange for an availability payment. Successive governments have taken full advantage of the policy’s ability to leverage private finance and thus generate additional infrastructure investment, beyond typically constrained capital budgets.

An often under-reported feature of the UK’s PPP policy is the variety of approaches it takes.

What’s new on the PPP Knowledge Lab?

Clive Harris's picture

The PPP Knowledge Lab was launched a year ago with the goal of making resources on public-private partnerships (PPPs) more accessible to the PPP community and filling a gap in knowledge around infrastructure and PPPs. Emboldened with this goal, the world’s top multilateral development agencies came together to create a central platform of comprehensive information on PPPs. Resources on the PPP Knowledge Lab have grown tremendously since its launch.

One PPP Program, Two World Bank Group Teams, and the MIT

Bernardo Weaver's picture



The largest Public-Private Partnership deal in Central America was recently highlighted at one of the world’s most prestigious universities during the Massachusetts Institute of Technology’s (MIT) 9th Annual Sustainability Summit. Under this year’s theme, Funding the Future, the event brought together more than 300 participants from students, startup CEOs, academia, think tanks and financial investors.

InfraCompass: Helping governments set their infrastructure policies in the right direction

Chris Heathcote's picture

The Global Infrastructure Hub (GI Hub) has launched a new tool to provide a guide for governments to create the best conditions to deliver infrastructure.

The initiative, InfraCompass, pinpoints the leading policies and practices that lead to sustainable and equitable infrastructure through efficient markets, better decision-making, and delivery. The GI Hub analysed 130 infrastructure-related datasets and produced data on infrastructure markets in 49 countries accounting for over 90% of global GDP.
 

InfraCompass online tool
 

Betting on Bankability: Picking up the pace of Manila’s Light Rail Transit system

Bill McCormack's picture


Photo credit: joyfull/Shutterstock.com

When the Manila Light Rail Transit (LRT) extension project reached financial close in March 2016 it was a landmark event for the Philippines and for Southeast Asia. It is an achievement for an enormous project worth some US$1.1 billion to go ahead in a region with not much of a track record of large-scale transport Public-Private Partnerships (PPPs). The project’s winning formula is a combination of at-times difficult ingredients: government responsiveness, a balanced risk profile, and project bankability.
 

More than a technicality: The engineering foundation of Scaling Solar

Alasdair Miller's picture



Public-Private Partnerships (PPPs) require the coordination of an impressive number of stakeholders to mobilize the commercial financing needed to achieve sustainable, inclusive growth in challenging environments. A great deal of analysis, negotiation, and hard work goes into every project. And each one presents an opportunity to encourage investors to venture into countries and compete for projects they wouldn’t have considered before and, ultimately, to create new markets.

While the commercial and legal challenges involved in structuring PPPs are well known, the efforts that go into conducting rigorous technical due diligence are less well known. For example, projects that aim to provide utility scale solar PV on short order, like the World Bank Group’s Scaling Solar program, require a team of experienced engineers from IFC’s Energy and Water Advisory working hand in hand with our PPP transaction advisors, legal experts, and environmental and social specialists to make them a reality.

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