Another Lost Decade? Effects of the Financial Crisis on Project Finance for Infrastructure
Rapid growth in project finance, driven by huge increases in liquidity, helped fuel the gains in private participation in infrastructure (PPI) in developing countries in the past decade. But when the financial crisis hit, the excess liquidity began...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2009/06/11401951/another-lost-decade-effects-financial-crisis-project-finance-infrastructure http://hdl.handle.net/10986/10541 |
| Summary: | Rapid growth in project finance, driven
by huge increases in liquidity, helped fuel the gains in
private participation in infrastructure (PPI) in developing
countries in the past decade. But when the financial crisis
hit, the excess liquidity began to dry up as lenders backed
away from practices that had helped generate it. The effects
are already apparent in greater delays in financial
closures, more cancellations, and higher financing costs for
PPI projects. If full recovery of the project finance market
takes much longer than expected, some of the measures that
are now being adopted to avoid shutting down project
pipelines might have unintended and very negative consequences. |
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