New Private Infrastructure Projects in Developing Countries Continue to Take Place But Projects are Being Affected by the Financial Crisis
Throughout the financial crisis, new private activity has continued to take place in developing countries with projects being tendered and brought to financial closure. In the first months of the full-scale of the financial crisis (Aug-Nov 2008), t...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2009/03/11419075/new-private-infrastructure-projects-developing-countries-continue-take-place-projects-being-affected-financial-crisis http://hdl.handle.net/10986/10991 |
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okr-10986-109912021-04-23T14:02:53Z New Private Infrastructure Projects in Developing Countries Continue to Take Place But Projects are Being Affected by the Financial Crisis Izaguirre, Ada Karina ACCESS TO FINANCE AIRPORT AIRPORTS ALTERNATIVE SOURCES OF FUNDING BANK LENDING BIDS CREDIT CRUNCH CREDIT MARKET DEBT DEBT ISSUANCES DECLINE IN INVESTMENT DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANK DIRECT FINANCING ECONOMIC CRISIS ECONOMICS EMERGING MARKET EMERGING MARKET ECONOMIES FINANCE COMPANY FINANCE INFRASTRUCTURE FINANCIAL ABILITY FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL MARKETS FREIGHT FREIGHT TRAFFIC INCOME INCOME GROUP INCOME GROUPS INCOMES INFRASTRUCTURE FINANCE INFRASTRUCTURE PROJECTS INSURANCE INSURANCE COMPANIES INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL FINANCE INVESTMENT VOLUME INVESTOR INTEREST LOW-INCOME COUNTRIES MARKET CONDITIONS MATURITIES NATIONAL DEVELOPMENT PASSENGER TRAFFIC PRIVATE CAPITAL PRIVATE CAPITAL FLOWS PRIVATE INFRASTRUCTURE PUBLIC BANKS PUBLIC SECTOR BANKS RAILWAYS RETURN SUSTAINABLE DEVELOPMENT TELECOMMUNICATIONS TOLLS TRANSPORT TRANSPORT PROJECTS URBAN DEVELOPMENT USER FEES Throughout the financial crisis, new private activity has continued to take place in developing countries with projects being tendered and brought to financial closure. In the first months of the full-scale of the financial crisis (Aug-Nov 2008), the rate of project closure was 26 percent lower than in the same period in 2007. However, since then private activity recovered and the project closure rate in Aug-Dec 2008 was just 15 percent lower than in the same period in the previous year. The slowdown reflects an initial impact of the financial crisis which has made financing (both debt and equity) more onerous and difficult to secure. Infrastructure projects are facing higher cost of financing, and lower demand for infrastructure services is beginning to impact some sectors. The major impact to date is projects being delayed, and, to a lesser extent, cancelled. Transport and energy are the worst affected sectors so far, while Europe and Central Asia (ECA) and upper middle income countries are the most affected groups of countries. It is too early to assess the full impact of the crisis on new Public Private Infrastructure (PPI) projects. Financial markets remain volatile while the financial crisis has now turned into a global economic crisis. As the 'flight to quality' sets in for banks and other financiers, the likely impact will be more stringent financial conditions, not only via higher cost of financing but also with lower debt/equity ratios, reduced maturities and more conservative risk allocation structures. 2012-08-13T13:48:32Z 2012-08-13T13:48:32Z 2009-03 http://documents.worldbank.org/curated/en/2009/03/11419075/new-private-infrastructure-projects-developing-countries-continue-take-place-projects-being-affected-financial-crisis http://hdl.handle.net/10986/10991 English PPI Data Update; Note No. 21 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO FINANCE AIRPORT AIRPORTS ALTERNATIVE SOURCES OF FUNDING BANK LENDING BIDS CREDIT CRUNCH CREDIT MARKET DEBT DEBT ISSUANCES DECLINE IN INVESTMENT DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANK DIRECT FINANCING ECONOMIC CRISIS ECONOMICS EMERGING MARKET EMERGING MARKET ECONOMIES FINANCE COMPANY FINANCE INFRASTRUCTURE FINANCIAL ABILITY FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL MARKETS FREIGHT FREIGHT TRAFFIC INCOME INCOME GROUP INCOME GROUPS INCOMES INFRASTRUCTURE FINANCE INFRASTRUCTURE PROJECTS INSURANCE INSURANCE COMPANIES INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL FINANCE INVESTMENT VOLUME INVESTOR INTEREST LOW-INCOME COUNTRIES MARKET CONDITIONS MATURITIES NATIONAL DEVELOPMENT PASSENGER TRAFFIC PRIVATE CAPITAL PRIVATE CAPITAL FLOWS PRIVATE INFRASTRUCTURE PUBLIC BANKS PUBLIC SECTOR BANKS RAILWAYS RETURN SUSTAINABLE DEVELOPMENT TELECOMMUNICATIONS TOLLS TRANSPORT TRANSPORT PROJECTS URBAN DEVELOPMENT USER FEES |
| spellingShingle |
ACCESS TO FINANCE AIRPORT AIRPORTS ALTERNATIVE SOURCES OF FUNDING BANK LENDING BIDS CREDIT CRUNCH CREDIT MARKET DEBT DEBT ISSUANCES DECLINE IN INVESTMENT DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANK DIRECT FINANCING ECONOMIC CRISIS ECONOMICS EMERGING MARKET EMERGING MARKET ECONOMIES FINANCE COMPANY FINANCE INFRASTRUCTURE FINANCIAL ABILITY FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL MARKETS FREIGHT FREIGHT TRAFFIC INCOME INCOME GROUP INCOME GROUPS INCOMES INFRASTRUCTURE FINANCE INFRASTRUCTURE PROJECTS INSURANCE INSURANCE COMPANIES INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL FINANCE INVESTMENT VOLUME INVESTOR INTEREST LOW-INCOME COUNTRIES MARKET CONDITIONS MATURITIES NATIONAL DEVELOPMENT PASSENGER TRAFFIC PRIVATE CAPITAL PRIVATE CAPITAL FLOWS PRIVATE INFRASTRUCTURE PUBLIC BANKS PUBLIC SECTOR BANKS RAILWAYS RETURN SUSTAINABLE DEVELOPMENT TELECOMMUNICATIONS TOLLS TRANSPORT TRANSPORT PROJECTS URBAN DEVELOPMENT USER FEES Izaguirre, Ada Karina New Private Infrastructure Projects in Developing Countries Continue to Take Place But Projects are Being Affected by the Financial Crisis |
| relation |
PPI Data Update; Note No. 21 |
| description |
Throughout the financial crisis, new
private activity has continued to take place in developing
countries with projects being tendered and brought to
financial closure. In the first months of the full-scale of
the financial crisis (Aug-Nov 2008), the rate of project
closure was 26 percent lower than in the same period in
2007. However, since then private activity recovered and the
project closure rate in Aug-Dec 2008 was just 15 percent
lower than in the same period in the previous year. The
slowdown reflects an initial impact of the financial crisis
which has made financing (both debt and equity) more onerous
and difficult to secure. Infrastructure projects are facing
higher cost of financing, and lower demand for
infrastructure services is beginning to impact some sectors.
The major impact to date is projects being delayed, and, to
a lesser extent, cancelled. Transport and energy are the
worst affected sectors so far, while Europe and Central Asia
(ECA) and upper middle income countries are the most
affected groups of countries. It is too early to assess the
full impact of the crisis on new Public Private
Infrastructure (PPI) projects. Financial markets remain
volatile while the financial crisis has now turned into a
global economic crisis. As the 'flight to quality'
sets in for banks and other financiers, the likely impact
will be more stringent financial conditions, not only via
higher cost of financing but also with lower debt/equity
ratios, reduced maturities and more conservative risk
allocation structures. |
| format |
Publications & Research :: Brief |
| author |
Izaguirre, Ada Karina |
| author_facet |
Izaguirre, Ada Karina |
| author_sort |
Izaguirre, Ada Karina |
| title |
New Private Infrastructure Projects in Developing Countries Continue to Take Place But Projects are Being Affected by the Financial Crisis |
| title_short |
New Private Infrastructure Projects in Developing Countries Continue to Take Place But Projects are Being Affected by the Financial Crisis |
| title_full |
New Private Infrastructure Projects in Developing Countries Continue to Take Place But Projects are Being Affected by the Financial Crisis |
| title_fullStr |
New Private Infrastructure Projects in Developing Countries Continue to Take Place But Projects are Being Affected by the Financial Crisis |
| title_full_unstemmed |
New Private Infrastructure Projects in Developing Countries Continue to Take Place But Projects are Being Affected by the Financial Crisis |
| title_sort |
new private infrastructure projects in developing countries continue to take place but projects are being affected by the financial crisis |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2009/03/11419075/new-private-infrastructure-projects-developing-countries-continue-take-place-projects-being-affected-financial-crisis http://hdl.handle.net/10986/10991 |
| _version_ |
1764415119224209408 |