Output-Based Aid in Project Finance : Using World Bank Guarantees to Enhance Credit
To obtain market financing for an infrastructure project, a private operator needs to be able to provide potential investors assurance that revenue flows to the project will be reliable. Where those revenue flows consist in part of government outpu...
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2005/07/7068519/output-based-aid-project-finance-using-world-bank-guarantees-enhance-credit http://hdl.handle.net/10986/11042 |
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okr-10986-110422021-04-23T14:02:53Z Output-Based Aid in Project Finance : Using World Bank Guarantees to Enhance Credit von Klaudy, Stephan Goswami, Umang ACCOUNTABILITY BANK GUARANTEES BORROWING COMMERCIAL DEBT CONSUMERS CREDITWORTHINESS DEBT DEBT SERVICE DEVELOPMENT AGENCIES DEVELOPMENT ASSISTANCE ECONOMICS EXTERNALITIES FINANCIAL MANAGEMENT FINANCIAL MARKETS GOVERNMENT OBLIGATIONS GOVERNMENT SUBSIDIES GOVERNMENT SUBSIDY HEALTH SERVICES LEVIES PRIVATIZATION PROJECT FINANCING TRANSACTION COSTS USER CHARGES WATER SUPPLY To obtain market financing for an infrastructure project, a private operator needs to be able to provide potential investors assurance that revenue flows to the project will be reliable. Where those revenue flows consist in part of government output-based aid (OBA) subsidy payments, providing that assurance can be problematic. Many governments are considered unreliable payers and therefore assigned a low credit rating by financial markets and investors. In these cases the credit quality of OBA payments needs to be enhanced if they are to help attract investment financing to the project. The World Bank offers guarantee instruments that can enhance the creditworthiness of such payments. There are two main options: partial risk guarantees to mitigate the risk of a government failing to make OBA payments for individual projects, and partial credit guarantees to help governments raise financing for a subsidy pool providing OBA payments to multiple project. 2012-08-13T13:58:27Z 2012-08-13T13:58:27Z 2005-07 http://documents.worldbank.org/curated/en/2005/07/7068519/output-based-aid-project-finance-using-world-bank-guarantees-enhance-credit http://hdl.handle.net/10986/11042 English OBApproaches; Note No. 9 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 |
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Foreign Institution |
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Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTABILITY BANK GUARANTEES BORROWING COMMERCIAL DEBT CONSUMERS CREDITWORTHINESS DEBT DEBT SERVICE DEVELOPMENT AGENCIES DEVELOPMENT ASSISTANCE ECONOMICS EXTERNALITIES FINANCIAL MANAGEMENT FINANCIAL MARKETS GOVERNMENT OBLIGATIONS GOVERNMENT SUBSIDIES GOVERNMENT SUBSIDY HEALTH SERVICES LEVIES PRIVATIZATION PROJECT FINANCING TRANSACTION COSTS USER CHARGES WATER SUPPLY |
| spellingShingle |
ACCOUNTABILITY BANK GUARANTEES BORROWING COMMERCIAL DEBT CONSUMERS CREDITWORTHINESS DEBT DEBT SERVICE DEVELOPMENT AGENCIES DEVELOPMENT ASSISTANCE ECONOMICS EXTERNALITIES FINANCIAL MANAGEMENT FINANCIAL MARKETS GOVERNMENT OBLIGATIONS GOVERNMENT SUBSIDIES GOVERNMENT SUBSIDY HEALTH SERVICES LEVIES PRIVATIZATION PROJECT FINANCING TRANSACTION COSTS USER CHARGES WATER SUPPLY von Klaudy, Stephan Goswami, Umang Output-Based Aid in Project Finance : Using World Bank Guarantees to Enhance Credit |
| relation |
OBApproaches; Note No. 9 |
| description |
To obtain market financing for an
infrastructure project, a private operator needs to be able
to provide potential investors assurance that revenue flows
to the project will be reliable. Where those revenue flows
consist in part of government output-based aid (OBA) subsidy
payments, providing that assurance can be problematic. Many
governments are considered unreliable payers and therefore
assigned a low credit rating by financial markets and
investors. In these cases the credit quality of OBA payments
needs to be enhanced if they are to help attract investment
financing to the project. The World Bank offers guarantee
instruments that can enhance the creditworthiness of such
payments. There are two main options: partial risk
guarantees to mitigate the risk of a government failing to
make OBA payments for individual projects, and partial
credit guarantees to help governments raise financing for a
subsidy pool providing OBA payments to multiple project. |
| format |
Publications & Research :: Brief |
| author |
von Klaudy, Stephan Goswami, Umang |
| author_facet |
von Klaudy, Stephan Goswami, Umang |
| author_sort |
von Klaudy, Stephan |
| title |
Output-Based Aid in Project Finance : Using World Bank Guarantees to Enhance Credit |
| title_short |
Output-Based Aid in Project Finance : Using World Bank Guarantees to Enhance Credit |
| title_full |
Output-Based Aid in Project Finance : Using World Bank Guarantees to Enhance Credit |
| title_fullStr |
Output-Based Aid in Project Finance : Using World Bank Guarantees to Enhance Credit |
| title_full_unstemmed |
Output-Based Aid in Project Finance : Using World Bank Guarantees to Enhance Credit |
| title_sort |
output-based aid in project finance : using world bank guarantees to enhance credit |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2005/07/7068519/output-based-aid-project-finance-using-world-bank-guarantees-enhance-credit http://hdl.handle.net/10986/11042 |
| _version_ |
1764415311360032768 |