Mobilizing Private Finance with IBRD/IDA Guarantees to Bridge the Infrastructure Funding Gap
Despite increasing private investments, public funding still accounts for the largest share of infrastructure finance in developing countries. The World Bank is improving its products and revising its business processes in order to mobilize more p...
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Washington, DC : World Bank
2022
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| Online Access: | http://documents.worldbank.org/curated/en/357321468340467708/Mobilizing-private-finance-with-IBRD-IDA-guarantees-to-bridge-the-infrastructure-funding-gap http://hdl.handle.net/10986/37382 |
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okr-10986-373822022-05-05T05:10:36Z Mobilizing Private Finance with IBRD/IDA Guarantees to Bridge the Infrastructure Funding Gap Delmon, Jeff PRIVATE INVESTMENT PUBLIC FUNDING INFRASTRUCTURE FINANCE MOBILIZATION FUNDING GAPS ALTERNATIVES PUBLIC-PRIVATE PARTNERSHIP RISK ALLOCATION GUARANTEES CONSTITUENT INSTITUTIONS Despite increasing private investments, public funding still accounts for the largest share of infrastructure finance in developing countries. The World Bank is improving its products and revising its business processes in order to mobilize more private capital and close the funding gaps that impede so many developing economies. Public-private partnerships (PPPs) offer alternatives to attract new sources of private financing and management while maintaining a public presence in ownership and strategic policy-setting. These partnerships can leverage public funds and offer advantages of contracting with well-qualified private enterprises to manage and deliver infrastructure services. They are not panaceas and they require clear goals and objectives, good public leadership, and strong government institutional capacities for effective implementation. Experience has demonstrated that the best way to attract more private capital into infrastructure is to provide a sustainable and credible policy and regulatory framework. Where markets and institutions are not sufficiently developed to attract private participation, innovative risk mitigation instruments and applications can help to bridge the infrastructure funding gap. The World Bank provides practical tools to help address specific market and policy risks and leverage larger amounts of private- sector investment. This paper describes the guarantees that the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) use to catalyze private finance for infrastructure. The report is organized in four sections. Section one provides background on guarantees and their development within the World Bank Group (WBG). Section two discusses the WBG's constituent institutions and how they shape their guarantees. Section three describes in more detail the guarantees offered by the IBRD/IDA, while section four addresses the extent to which those guarantees can cover key project risks. 2022-05-04T16:00:26Z 2022-05-04T16:00:26Z 2007-06 Report http://documents.worldbank.org/curated/en/357321468340467708/Mobilizing-private-finance-with-IBRD-IDA-guarantees-to-bridge-the-infrastructure-funding-gap http://hdl.handle.net/10986/37382 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC : World Bank Economic & Sector Work Economic & Sector Work :: Other Financial Sector Study World |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
PRIVATE INVESTMENT PUBLIC FUNDING INFRASTRUCTURE FINANCE MOBILIZATION FUNDING GAPS ALTERNATIVES PUBLIC-PRIVATE PARTNERSHIP RISK ALLOCATION GUARANTEES CONSTITUENT INSTITUTIONS |
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PRIVATE INVESTMENT PUBLIC FUNDING INFRASTRUCTURE FINANCE MOBILIZATION FUNDING GAPS ALTERNATIVES PUBLIC-PRIVATE PARTNERSHIP RISK ALLOCATION GUARANTEES CONSTITUENT INSTITUTIONS Delmon, Jeff Mobilizing Private Finance with IBRD/IDA Guarantees to Bridge the Infrastructure Funding Gap |
| geographic_facet |
World |
| description |
Despite increasing private investments,
public funding still accounts for the largest share of
infrastructure finance in developing countries. The World
Bank is improving its products and revising its business
processes in order to mobilize more private capital and
close the funding gaps that impede so many developing
economies. Public-private partnerships (PPPs) offer
alternatives to attract new sources of private financing and
management while maintaining a public presence in ownership
and strategic policy-setting. These partnerships can
leverage public funds and offer advantages of contracting
with well-qualified private enterprises to manage and
deliver infrastructure services. They are not panaceas and
they require clear goals and objectives, good public
leadership, and strong government institutional capacities
for effective implementation. Experience has demonstrated
that the best way to attract more private capital into
infrastructure is to provide a sustainable and credible
policy and regulatory framework. Where markets and
institutions are not sufficiently developed to attract
private participation, innovative risk mitigation
instruments and applications can help to bridge the
infrastructure funding gap. The World Bank provides
practical tools to help address specific market and policy
risks and leverage larger amounts of private- sector
investment. This paper describes the guarantees that the
International Bank for Reconstruction and Development (IBRD)
and the International Development Association (IDA) use to
catalyze private finance for infrastructure. The report is
organized in four sections. Section one provides background
on guarantees and their development within the World Bank
Group (WBG). Section two discusses the WBG's
constituent institutions and how they shape their
guarantees. Section three describes in more detail the
guarantees offered by the IBRD/IDA, while section four
addresses the extent to which those guarantees can cover key
project risks. |
| format |
Report |
| author |
Delmon, Jeff |
| author_facet |
Delmon, Jeff |
| author_sort |
Delmon, Jeff |
| title |
Mobilizing Private Finance with IBRD/IDA Guarantees to Bridge the Infrastructure Funding Gap |
| title_short |
Mobilizing Private Finance with IBRD/IDA Guarantees to Bridge the Infrastructure Funding Gap |
| title_full |
Mobilizing Private Finance with IBRD/IDA Guarantees to Bridge the Infrastructure Funding Gap |
| title_fullStr |
Mobilizing Private Finance with IBRD/IDA Guarantees to Bridge the Infrastructure Funding Gap |
| title_full_unstemmed |
Mobilizing Private Finance with IBRD/IDA Guarantees to Bridge the Infrastructure Funding Gap |
| title_sort |
mobilizing private finance with ibrd/ida guarantees to bridge the infrastructure funding gap |
| publisher |
Washington, DC : World Bank |
| publishDate |
2022 |
| url |
http://documents.worldbank.org/curated/en/357321468340467708/Mobilizing-private-finance-with-IBRD-IDA-guarantees-to-bridge-the-infrastructure-funding-gap http://hdl.handle.net/10986/37382 |
| _version_ |
1764484494357692416 |