Mitigating Private Infrastructure Project Risks
Private sector financing is essential to bridging the infrastructure gap between emerging markets and developed countries. Given the risk profiles of many of these projects, however, private investors are reluctant to help finance important infrast...
| Main Authors: | , , |
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| Format: | Brief |
| Language: | English |
| Published: |
International Finance Corporation, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/958331477467492338/Mitigating-private-infrastructure-project-risks http://hdl.handle.net/10986/30346 |
| Summary: | Private sector financing is essential to
bridging the infrastructure gap between emerging markets and
developed countries. Given the risk profiles of many of
these projects, however, private investors are reluctant to
help finance important infrastructure investments. Now, new
packages of financial and advisory products offered by
development finance institutions are substantially improving
these risk profiles, making them viable for private
investment even in very challenging environments. The
revenue and risk profiles of emerging market infrastructure
projects present major challenges to attracting much needed
private investment. Without private financing, however, many
of these infrastructure projects, which are critical to
meeting development goals, will not be built. Recognizing
this gap, development institutions have created new
financial products that lower the risk of emerging market
infrastructure projects for private investors. As recent
projects in Nigeria and Cote d’Ivoire demonstrate, this new
approach can help attract private investment to even the
most challenging environments. |
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