Financing Water and Sanitation Projects : The Unique Risks
A project finance structure allows water projects with attractive cash flows and risk profiles to secure long-term private capital. But even in industrial countries the credit strength of off-taking municipal governments and the sector's tradi...
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| Format: | Viewpoint |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1998/09/441599/financing-water-sanitation-projects-unique-risks http://hdl.handle.net/10986/11535 |
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okr-10986-115352021-04-23T14:02:56Z Financing Water and Sanitation Projects : The Unique Risks Haarmeyer, David Mody, Ashoka PROJECT FINANCE PRIVATE INVESTMENTS LONG-TERM DEBT CASH FLOW MONOPOLIES MUNICIPAL GOVERNMENT POLITICAL RISKS COMMERCIAL RISKS GOVERNMENT REGULATION EXPROPRIATION FEDERAL GOVERNMENTS PROJECT RISKS CASE STUDIES COMMERCIAL BANK LOANS COMMERCIAL DEBT EQUITY FINANCE COMPETITION (ECONOMIC) LENDING TERMS LONG-TERM DEBT INVESTMENT RISKS INFRASTRUCTURE FINANCING WATER SECTOR BANK LOANS BUILD-OWN CAPITAL EXPENDITURES CAPITAL MARKET CAPITAL MARKETS CASH FLOW CASH FLOWS COMMERCIAL DEBT COMMERCIAL LOANS DEBT FINANCING SOURCES INTEREST RATES INTERNAL CASH GENERATION LOCAL GOVERNMENT MUNICIPAL GOVERNMENTS PRIVATE FINANCING PRIVATE PARTICIPATION PRIVATE SECTOR PRIVATIZATION RESOURCE MOBILIZATION RETURN ON EQUITY RISK PROFILE SANITATION SECTOR STREAMS TAX COLLECTION TRANSPORT UTILITIES WASTEWATER SERVICES WATER COMPANIES WATER COMPANY WATER PROJECTS WATER UTILITIES A project finance structure allows water projects with attractive cash flows and risk profiles to secure long-term private capital. But even in industrial countries the credit strength of off-taking municipal governments and the sector's traditional monopoly structure expose lenders to potentially significant credit, regulatory, and political risks. These risks, combined with the sunk, highly specific, and non-redeployable nature of water infrastructure investments, mean that lenders and investors are vulnerable to opportunistic contracting problems and expropriation. Reviewing some recent innovative water and sanitation projects, the authors show that private capital participation on a limited recourse or nonrecourse basis has required support by third parties such as multilaterals and federal government agencies to absorb noncommercial risks. 2012-08-13T15:19:48Z 2012-08-13T15:19:48Z 1998-09 http://documents.worldbank.org/curated/en/1998/09/441599/financing-water-sanitation-projects-unique-risks http://hdl.handle.net/10986/11535 English Viewpoint: Public Policy for the Private Sector; Note No. 151 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Viewpoint Publications & Research Latin America & Caribbean Europe and Central Asia East Asia and Pacific Argentina Malaysia Turkey Australia United Kingdom Mexico |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
PROJECT FINANCE PRIVATE INVESTMENTS LONG-TERM DEBT CASH FLOW MONOPOLIES MUNICIPAL GOVERNMENT POLITICAL RISKS COMMERCIAL RISKS GOVERNMENT REGULATION EXPROPRIATION FEDERAL GOVERNMENTS PROJECT RISKS CASE STUDIES COMMERCIAL BANK LOANS COMMERCIAL DEBT EQUITY FINANCE COMPETITION (ECONOMIC) LENDING TERMS LONG-TERM DEBT INVESTMENT RISKS INFRASTRUCTURE FINANCING WATER SECTOR BANK LOANS BUILD-OWN CAPITAL EXPENDITURES CAPITAL MARKET CAPITAL MARKETS CASH FLOW CASH FLOWS COMMERCIAL DEBT COMMERCIAL LOANS DEBT FINANCING SOURCES INTEREST RATES INTERNAL CASH GENERATION LOCAL GOVERNMENT MUNICIPAL GOVERNMENTS PRIVATE FINANCING PRIVATE PARTICIPATION PRIVATE SECTOR PRIVATIZATION RESOURCE MOBILIZATION RETURN ON EQUITY RISK PROFILE SANITATION SECTOR STREAMS TAX COLLECTION TRANSPORT UTILITIES WASTEWATER SERVICES WATER COMPANIES WATER COMPANY WATER PROJECTS WATER UTILITIES |
| spellingShingle |
PROJECT FINANCE PRIVATE INVESTMENTS LONG-TERM DEBT CASH FLOW MONOPOLIES MUNICIPAL GOVERNMENT POLITICAL RISKS COMMERCIAL RISKS GOVERNMENT REGULATION EXPROPRIATION FEDERAL GOVERNMENTS PROJECT RISKS CASE STUDIES COMMERCIAL BANK LOANS COMMERCIAL DEBT EQUITY FINANCE COMPETITION (ECONOMIC) LENDING TERMS LONG-TERM DEBT INVESTMENT RISKS INFRASTRUCTURE FINANCING WATER SECTOR BANK LOANS BUILD-OWN CAPITAL EXPENDITURES CAPITAL MARKET CAPITAL MARKETS CASH FLOW CASH FLOWS COMMERCIAL DEBT COMMERCIAL LOANS DEBT FINANCING SOURCES INTEREST RATES INTERNAL CASH GENERATION LOCAL GOVERNMENT MUNICIPAL GOVERNMENTS PRIVATE FINANCING PRIVATE PARTICIPATION PRIVATE SECTOR PRIVATIZATION RESOURCE MOBILIZATION RETURN ON EQUITY RISK PROFILE SANITATION SECTOR STREAMS TAX COLLECTION TRANSPORT UTILITIES WASTEWATER SERVICES WATER COMPANIES WATER COMPANY WATER PROJECTS WATER UTILITIES Haarmeyer, David Mody, Ashoka Financing Water and Sanitation Projects : The Unique Risks |
| geographic_facet |
Latin America & Caribbean Europe and Central Asia East Asia and Pacific Argentina Malaysia Turkey Australia United Kingdom Mexico |
| relation |
Viewpoint: Public Policy for the Private Sector; Note No. 151 |
| description |
A project finance structure allows water
projects with attractive cash flows and risk profiles to
secure long-term private capital. But even in industrial
countries the credit strength of off-taking municipal
governments and the sector's traditional monopoly
structure expose lenders to potentially significant credit,
regulatory, and political risks. These risks, combined with
the sunk, highly specific, and non-redeployable nature of
water infrastructure investments, mean that lenders and
investors are vulnerable to opportunistic contracting
problems and expropriation. Reviewing some recent innovative
water and sanitation projects, the authors show that private
capital participation on a limited recourse or nonrecourse
basis has required support by third parties such as
multilaterals and federal government agencies to absorb
noncommercial risks. |
| format |
Publications & Research :: Viewpoint |
| author |
Haarmeyer, David Mody, Ashoka |
| author_facet |
Haarmeyer, David Mody, Ashoka |
| author_sort |
Haarmeyer, David |
| title |
Financing Water and Sanitation Projects : The Unique Risks |
| title_short |
Financing Water and Sanitation Projects : The Unique Risks |
| title_full |
Financing Water and Sanitation Projects : The Unique Risks |
| title_fullStr |
Financing Water and Sanitation Projects : The Unique Risks |
| title_full_unstemmed |
Financing Water and Sanitation Projects : The Unique Risks |
| title_sort |
financing water and sanitation projects : the unique risks |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/1998/09/441599/financing-water-sanitation-projects-unique-risks http://hdl.handle.net/10986/11535 |
| _version_ |
1764417084605857792 |