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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Main Author: Izaguirre, Ada Karina
Format: Brief
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
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
id okr-10986-10991
recordtype oai_dc
spelling 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
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