Despite the financial and economiccrisis, new private activity in infrastructure continues totake place in developing countries. New projects are stillbeing tendered and brought to financial closure, but at aslower pace. Between July 2008 and March 2009, the rate ofproject closure fell 15 percent by investment compared to asimilar period in the previous year. Investment commitmentsto private infrastructure projects showed some signs ofrecovery in the first months of 2009, but this recovery wasdriven by a few large priority projects in select countries.These projects were able to raise financing thanks to thebacking of highly-rated sponsors and their priority statusin their respective countries. The financial crisis has madefinancing (both debt and equity) more difficult to secure,and has hampered the ability of governments to maintaintheir financial commitments to private infrastructureprojects. These projects are facing higher cost of financinga problem compounded by the lower demand for infrastructureservices that is beginning to impact some sectors. As aresult some planned private infrastructure projects arebeing delayed, restructured, and, to a lesser extent,cancelled. Transport is the worst affected sector so far,while the most affected group of countries are middle-incomecountries, especially in the Eastern Europe and Central Asia region.
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