Investment commitments to infrastructureprojects with private participation (Private Participationin Infrastructure (PPI) projects) reaching closure indeveloping countries grew by 22 percent in the third quarterof 2009, and by 10 percent in the first three quarters ofthe year, compared with the same periods of 2008. Thesegrowth rates indicate a strong recovery from the 54 percentdecline in the second half of 2008 compared with the sameperiod of 2007. But investment grew selectively,concentrated in large energy projects in a few countries:Brazil, India, and Turkey. The Russian Federation, bycontrast, saw a sharp decline in investment as a result ofthe global financial crisis and the end of the RAO UESprivatization program. If these four countries wereexcluded, investment in developing countries would havefallen by 49 percent in the third quarter of 2009, and by 5percent in the first three quarters, compared with the sameperiods of 2008. Among sectors, energy was the only one withinvestment growth in 2009, thanks to activity in greenfieldpower plants. Across sectors, large projects (US$500 millionor more) accounted for the investment growth. Privateactivity as measured by number of projects remained slowerthan before the full onset of the financial crisis. Thenumber of projects reaching closure was 27 percent lower inthe third quarter of 2009, and 10 percent lower in the firstthree quarters, than in the same periods of 2008. Thesetrends suggest greater project selectivity. Indeed, thelarge projects that are reaching closure are characterizedby strong economic and financial fundamentals and thebacking of financially solid sponsors and governments.
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