Toward a Framework for Assessing Private vs Public Investment in Infrastructure
Toward a Framework for Assessing Private vs Public Investment in Infrastructure

Author: Morten Lykke Lauridsen

Publisher:

Published: 2017

Total Pages:

ISBN-13:

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Significant additional resources from the private sector will be needed for infrastructure in emerging market countries if the Sustainable Development Goals are to be achieved. Close to 80 percent of all infrastructure investments are government funded in these countries, yet it is recognized that public sector investments alone will not be sufficient to bridge the infrastructure gap. Scaling up the role that private firms and investors play in infrastructure provision will require a better understanding of the advantages and disadvantages of public versus private provision, including the issues and incentives that need to be considered in order to find the right balance between the two.

Mastering the Risky Business of Public-Private Partnerships in Infrastructure
Mastering the Risky Business of Public-Private Partnerships in Infrastructure

Author: Manal Fouad

Publisher: International Monetary Fund

Published: 2021-05-10

Total Pages: 61

ISBN-13: 1513576569

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Investment in infrastructure can be a driving force of the economic recovery in the aftermath of the COVID-19 pandemic in the context of shrinking fiscal space. Public-private partnerships (PPP) bring a promise of efficiency when carefully designed and managed, to avoid creating unnecessary fiscal risks. But fiscal illusions prevent an understanding the sources of fiscal risks, which arise in all infrastructure projects, and that in PPPs present specific characteristics that need to be addressed. PPP contracts are also affected by implicit fiscal risks when they are poorly designed, particularly when a government signs a PPP contract for a project with no financial sustainability. This paper reviews the advantages and inconveniences of PPPs, discusses the fiscal illusions affecting them, identifies a diversity of fiscal risks, and presents the essentials of PPP fiscal risk management.

Public Investment and Public-Private Partnerships
Public Investment and Public-Private Partnerships

Author: G. Schwartz

Publisher: Springer

Published: 2008-06-25

Total Pages: 326

ISBN-13: 0230593992

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There are now increasing concerns about the need to upgrade public infrastructure, improve the delivery of public services, and explore new options for partnering with the private sector. This book looks at ways of strengthening the efficiency of public investment and managing the fiscal risks of public-private partnerships.

Infrastructure as an Asset Class
Infrastructure as an Asset Class

Author: Barbara Weber

Publisher: John Wiley & Sons

Published: 2016-05-10

Total Pages: 426

ISBN-13: 1119226562

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Clear, comprehensive guidance toward the global infrastructure investment market Infrastructure As An Asset Class is the leading infrastructure investment guide, with comprehensive coverage and in-depth expert insight. This new second edition has been fully updated to reflect the current state of the global infrastructure market, its sector and capital requirements, and provides a valuable overview of the knowledge base required to enter the market securely. Step-by-step guidance walks you through individual infrastructure assets, emphasizing project financing structures, risk analysis, instruments to help you understand the mechanics of this complex, but potentially rewarding, market. New chapters explore energy, renewable energy, transmission and sustainability, providing a close analysis of these increasingly lucrative areas. The risk profile of an asset varies depending on stage, sector and country, but the individual structure is most important in determining the risk/return profile. This book provides clear, detailed explanations and invaluable insight from a leading practitioner to give you a solid understanding of the global infrastructure market. Get up to date on the current global infrastructure market Investigate individual infrastructure assets step-by-step Examine illustrative real-world case studies Understand the factors that determine risk/return profiles Infrastructure continues to be an area of global investment growth, both in the developed world and in emerging markets. Conditions continually change, markets shift and new considerations arise; only the most current reference can supply the right information practitioners need to be successful. Infrastructure As An Asset Class provides clear reference based on the current global infrastructure markets, with in-depth analysis and expert guidance toward effective infrastructure investment.

Regulation and Private Sector Investment in Infrastructure
Regulation and Private Sector Investment in Infrastructure

Author: Sheoli Pargal

Publisher: World Bank Publications

Published: 2003

Total Pages: 52

ISBN-13:

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The author assesses the importance of the regulatory framework as a determinant of private sector investment in infrastructure. She uses recently compiled data on private and public sector investment in the water, power, telecommunications, railroads, and roads sectors between 1980 and 1998 in nine countries in Latin America. The author finds that the most significant institutional determinant of private investment volumes is the passage of legislation liberalizing the investment regime. This is important because it indicates that the legal basis for reform is probably more critical in determining the quality of the investment climate than specific aspects of the institutional framework governing private sector participation. In accordance with intuition, the author's results indicate that government action to increase regulatory certainty and minimize the perceived risk of expropriation through the establishment of independent regulatory bodies is a critical determinant of the volume of private investment flows. She also finds that the general relationship of private to public investment is one of substitutability.

Private Sector Investment in Infrastructure
Private Sector Investment in Infrastructure

Author: Jeffrey Delmon

Publisher:

Published: 2021-02-10

Total Pages: 704

ISBN-13: 9789403530505

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Private Sector Investment in Infrastructure', now in its fourth edition, is a practical, hands-on book elucidating how the private sector (through ? Public-Private Partnerships (PPPs)) can furnish more efficient procurement, cheaper, faster, and better quality; refocus infrastructure services on service delivery, consumer satisfaction and life-cycle maintenance; and provide new sources of innovation, technological advances and investment, including through limited recourse debt (i.e., project financing).00PPPs are part of a fundamental, global shift in the role of the government ? from being the direct provider of public services to becoming the planner, facilitator, contract manager and/or regulator who ensures that local services are available, reliable, meet essential quality standards, and are affordable for users and the economy.00The past five years have posed some new severe challenges, a global pandemic, debt crises, and a global economic crisis. While the responses to these challenges are complex, the fundamentals remain unchanged. Infrastructure supports economic growth, creates jobs and improves livelihoods. Private investment in infrastructure is critical now more than ever, in the face of stiff competition from alternative uses of public funds.

Private Finance for Development
Private Finance for Development

Author: Hilary Devine

Publisher: International Monetary Fund

Published: 2021-05-14

Total Pages: 161

ISBN-13: 1513571567

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The Covid-19 pandemic has aggravated the tension between large development needs in infrastructure and scarce public resources. To alleviate this tension and promote a strong and job-rich recovery from the crisis, Africa needs to mobilize more financing from and to the private sector.

Infrastructure Public-Private Partnerships
Infrastructure Public-Private Partnerships

Author: Carlos Oliveira Cruz

Publisher: Springer Science & Business Media

Published: 2013-05-18

Total Pages: 189

ISBN-13: 3642369103

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Economic development and social welfare depend on the existence of effective and efficient infrastructure systems, particularly in health, energy, transportation and water, many of which are developed and managed through Public-Private Partnerships (PPPs). However, empirical evidence suggests some pitfalls in the use of these PPP arrangements. This book addresses these issues, focusing on mostly three key questions: How to improve the robustness of the decision-making process leading to the option of PPP? How to improve contract management as the longest phase of the process? How can contracts be improved to accommodate uncertainty and avoid harmful renegotiations? The authors explore the concept of flexible contracts, the uncertainty modeling for improving the robustness of the decision-making process, and develop an overall framework for effective contract management, along with a comprehensive analysis of current renegotiation patterns. The ultimate goal is to improve the contractual performance, as well as the overall infrastructure management and social welfare. ​

Economic Analysis and Infrastructure Investment
Economic Analysis and Infrastructure Investment

Author: Edward L. Glaeser

Publisher: University of Chicago Press

Published: 2021-11-11

Total Pages: 479

ISBN-13: 022680061X

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Policy makers often call for increased spending on infrastructure, which can encompass a broad range of investments, from roads and bridges to digital networks that will expand access to high-speed broadband. Some point to the near-term macroeconomic benefits, such as job creation, associated with infrastructure spending; others point to the long-term effects of such spending on productivity and economic growth. Economic Analysis and Infrastructure Investment explores the links between infrastructure investment and economic outcomes, analyzing key economic issues in the funding and management of infrastructure projects. It includes new research on the short-run stimulus effects of infrastructure spending, develops new estimates of the stock of US infrastructure capital, and explores incentive aspects of public-private partnerships with particular attention to their allocation of risk. The volume provides a reference for researchers seeking to study infrastructure issues and for policymakers tasked with determining the appropriate level and allocation of infrastructure spending.

Global Infrastructure
Global Infrastructure

Author: Peter Blair Henry

Publisher:

Published: 2020

Total Pages: 69

ISBN-13:

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This paper evaluates the literature that claims poor countries have an infrastructure investment gap of roughly 1 trillion dollars per year and therefore possess widespread opportunities for productive spending on infrastructure. The evaluation introduces and employs a simple framework that concludes this claim is invalid. The framework compares a poor country's social rate of return on infrastructure investment with: (a) the poor country's return on private capital, and (b) the average rich country's return on private capital. The dual comparison reveals that additional investment in a poor country's infrastructure is: (1) efficient only if the return on poor-country infrastructure exceeds the return on poor-country private capital; and (2) financeable through private rich-country savings only if the return on poor-country infrastructure exceeds the return on rich-country private capital. This dual-hurdle rate framework suggests a two-by-two classification that sorts countries into quadrants according to their potential for efficient investment in infrastructure. The paper then applies the classification to the only existing, comprehensive cross-country estimates of the social rate of return on infrastructure (electricity and paved roads). The conventional wisdom is that there are ubiquitous opportunities for infrastructure investment that meet the two criteria. In fact, only 7 of 53 developing countries clear the dual-hurdle rate in both electricity and paved roads. Where it is efficient to invest, however, the potential for excess returns on infrastructure is quite large--five times larger, in fact, than the excess returns that existed, but have long since been arbitraged away, in emerging-market stocks when foreigners were first permitted to own shares. The framework thus implies a new definition of the infrastructure gap as the amount of investment required to close the difference between the return on infrastructure in poor countries and the return on private capital elsewhere. More importantly, the framework moves the discussion away from alarmism and exaggeration toward the clarity that economics can and should bring to any policy discussion.