Mitigating Private Infrastructure Project Risks

Audu, Ejura Phoebe ; Benjamin, Matthew ; Shi, Lin

International Finance Corporation, Washington, DC

关键词: INFRASTRUCTURE FINANCE;    EMERGING MARKET ECONOMIES;    RISK MANAGEMENT;    INFRASTRUCTURE INVESTMENT;    DEVELOPMENT FINANCE INSTITUTION;   

RP-ID  :  109470

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Private sector financing is essential tobridging the infrastructure gap between emerging markets anddeveloped countries. Given the risk profiles of many ofthese projects, however, private investors are reluctant tohelp finance important infrastructure investments. Now, newpackages of financial and advisory products offered bydevelopment finance institutions are substantially improvingthese risk profiles, making them viable for privateinvestment even in very challenging environments. Therevenue and risk profiles of emerging market infrastructureprojects present major challenges to attracting much neededprivate investment. Without private financing, however, manyof these infrastructure projects, which are critical tomeeting development goals, will not be built. Recognizingthis gap, development institutions have created newfinancial products that lower the risk of emerging marketinfrastructure projects for private investors. As recentprojects in Nigeria and Cote d’Ivoire demonstrate, this newapproach can help attract private investment to even themost challenging environments.