Why Infrastructure Financing Facilities Often Fall Short of Their Objectives
To encourage the private funding and provision of infrastructure services, governments have used specialized financing facilities to offer financial support to investors, often in the form of grants, soft loans, or guarantees. The authors present case studies of infrastructure financing facilities i...
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| Format: | Publications & Research |
| Language: | en_US |
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World Bank, Washington, DC
2015
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| Online Access: | http://hdl.handle.net/10986/21479 |
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okr-10986-214792021-04-23T14:04:02Z Why Infrastructure Financing Facilities Often Fall Short of Their Objectives Klingebiel, Daniela Ruster, Jeff ADB airports bonds capital flows capital market capital markets cash flow collateral commercial banks conflict of interests cost of capital credit rating decision making decision making process demonstration effects electricity emerging market economies emerging markets financial closure financial crises financial institution financial institutions financial markets financial sector financial support fiscal government budgets government guarantees government intervention government policies government resources housing insolvency institutional arrangements institutional capacity institutional framework institutional investors insurance interest rates investment banks legal framework legal structure liquidity long-term capital macroeconomic conditions mutual funds natural monopolies political risk political risks private ownership private sector private sector involvement privatization project finance property rights provision of infrastructure public agencies public finances public funds public sector public support rating agencies regulatory framework regulatory regimes risk profile roads securities state-owned enterprises subordinated debt tax tax incentives telecommunications term bonds transaction costs transparency utilities infrastructure financing financial instruments case studies developmental stages private sector participation policy framework macroeconomic context financial policy pricing schemes design criteria To encourage the private funding and provision of infrastructure services, governments have used specialized financing facilities to offer financial support to investors, often in the form of grants, soft loans, or guarantees. The authors present case studies of infrastructure financing facilities in various stages of development in Colombia, India, and Pakistan. They also present case studies of government-sponsored financing facilities (not of infrastructure) in Argentina, and Moldova. They find that these facilities have often fallen short of their objectives for two main reasons. First, the environment was not conducive to private participation in infrastructure because of poor sector policies, an unstable macroeconomic environment, and inadequate financial sector policies, among other reasons. Second, the facility was faulty in design - in terms of sectors targeted, pricing of instruments, and consistency of objectives, and instruments. 2015-02-23T23:12:13Z 2015-02-23T23:12:13Z 2000-06 http://hdl.handle.net/10986/21479 en_US Policy Research Working Paper;No. 2358 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Latin America & Caribbean South Asia ARGENTINA Colombia India Moldova Pakistan |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
en_US |
| topic |
ADB airports bonds capital flows capital market capital markets cash flow collateral commercial banks conflict of interests cost of capital credit rating decision making decision making process demonstration effects electricity emerging market economies emerging markets financial closure financial crises financial institution financial institutions financial markets financial sector financial support fiscal government budgets government guarantees government intervention government policies government resources housing insolvency institutional arrangements institutional capacity institutional framework institutional investors insurance interest rates investment banks legal framework legal structure liquidity long-term capital macroeconomic conditions mutual funds natural monopolies political risk political risks private ownership private sector private sector involvement privatization project finance property rights provision of infrastructure public agencies public finances public funds public sector public support rating agencies regulatory framework regulatory regimes risk profile roads securities state-owned enterprises subordinated debt tax tax incentives telecommunications term bonds transaction costs transparency utilities infrastructure financing financial instruments case studies developmental stages private sector participation policy framework macroeconomic context financial policy pricing schemes design criteria |
| spellingShingle |
ADB airports bonds capital flows capital market capital markets cash flow collateral commercial banks conflict of interests cost of capital credit rating decision making decision making process demonstration effects electricity emerging market economies emerging markets financial closure financial crises financial institution financial institutions financial markets financial sector financial support fiscal government budgets government guarantees government intervention government policies government resources housing insolvency institutional arrangements institutional capacity institutional framework institutional investors insurance interest rates investment banks legal framework legal structure liquidity long-term capital macroeconomic conditions mutual funds natural monopolies political risk political risks private ownership private sector private sector involvement privatization project finance property rights provision of infrastructure public agencies public finances public funds public sector public support rating agencies regulatory framework regulatory regimes risk profile roads securities state-owned enterprises subordinated debt tax tax incentives telecommunications term bonds transaction costs transparency utilities infrastructure financing financial instruments case studies developmental stages private sector participation policy framework macroeconomic context financial policy pricing schemes design criteria Klingebiel, Daniela Ruster, Jeff Why Infrastructure Financing Facilities Often Fall Short of Their Objectives |
| geographic_facet |
Europe and Central Asia Latin America & Caribbean South Asia ARGENTINA Colombia India Moldova Pakistan |
| relation |
Policy Research Working Paper;No. 2358 |
| description |
To encourage the private funding and provision of infrastructure services, governments have used specialized financing facilities to offer financial support to investors, often in the form of grants, soft loans, or guarantees. The authors present case studies of infrastructure financing facilities in various stages of development in Colombia, India, and Pakistan. They also present case studies of government-sponsored financing facilities (not of infrastructure) in Argentina, and Moldova. They find that these facilities have often fallen short of their objectives for two main reasons. First, the environment was not conducive to private participation in infrastructure because of poor sector policies, an unstable macroeconomic environment, and inadequate financial sector policies, among other reasons. Second, the facility was faulty in design - in terms of sectors targeted, pricing of instruments, and consistency of objectives, and instruments. |
| format |
Publications & Research |
| author |
Klingebiel, Daniela Ruster, Jeff |
| author_facet |
Klingebiel, Daniela Ruster, Jeff |
| author_sort |
Klingebiel, Daniela |
| title |
Why Infrastructure Financing Facilities Often Fall Short of Their Objectives |
| title_short |
Why Infrastructure Financing Facilities Often Fall Short of Their Objectives |
| title_full |
Why Infrastructure Financing Facilities Often Fall Short of Their Objectives |
| title_fullStr |
Why Infrastructure Financing Facilities Often Fall Short of Their Objectives |
| title_full_unstemmed |
Why Infrastructure Financing Facilities Often Fall Short of Their Objectives |
| title_sort |
why infrastructure financing facilities often fall short of their objectives |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://hdl.handle.net/10986/21479 |
| _version_ |
1764448346400882688 |