Funding and Financing Infrastructure : The Joint Use of Public and Private Finance

Fay, Marianne ; Martimort, David ; Straub, Stephane

World Bank, Washington, DC

关键词: INFRASTRUCTURE FINANCE;    PUBLIC FINANCE;    PUBLIC-PRIVATE PARTNERSHIPS;    SUBSIDIES;    SOCIAL INCLUSION;   

DOI  :  10.1596/1813-9450-8496
RP-ID  :  WPS8496

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The paper addresses the issue of thefeasible level of private finance in a contracting model ofinfrastructure finding and financing. It characterizes thestructure of financial contracts, deriving the conditionsunder which both public and private finance coexist. A keyfeature is that access to outside finance and the regulatorydecision on pricing and the amount of public subsidy, hencethe extent of price recovery, are jointly determined.Mobilizing private finance requires a combination of pricefor the service and subsidy to the service provider that islarge enough, exacerbating the fundamental tensions betweenfinancial viability through cost recovery and socialinclusion. The paper then shows that the feasibilitytrade-off responds in non-trivial ways to changes in theeconomic and institutional environment likely to occur alongthe development path. While improvements along some of thesedimensions, notably in the efficiency of bankruptcyprocedures, appear to ease access to private finance,others, such as the cost of public funds, actually makespublic finance more efficient. Using project data from thePPI database including information on the financialstructure, the authors uncover an inverse U-shaped patternin the share of private finance, peaking for countries inthe upper-middle income range, which echoes theirtheoretical findings.