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Submitted by Daniel L. Bond on

Excellent comments on a useful report.

One suggestion the comment fails to make for increasing institutional investor participation in financing infrastructure is to arrange for them to participate in the refinancing of projects post construction and to do this at initial financial close of new projects. This would:
• Provide institutional investors with the income generating, lower-risk debt assets they seek
• Provide greater “value-for-money” from private financing during the construction period by banks and infrastructure funds who can provide active management during the construction phase but typically seek to exit projects once they are operational

One way multilaterals and DFIs can encourage this would to provide refinancing guarantees to project sponsors at initial financial close.

Daniel Bond, Senior Advisor to MiDA, A NASP-USAID Investment Partnership