The infrastructure sector contribution to sustainable development - MOOC FFD ...Marco Pittalis
The paper presents the relevance of the infrastructure sector to sustainable development, with particular regard to its central role within the Sustainable Development Goals, and details the financing requirements and financing modalities options to support the implementation of required interventions in the sector. The discussion is concluded introducing basic climate change concepts related to the infrastructure sector, presenting for each infrastructure subsector a number of mitigation options that could be implemented with the financing resources mobilized following the modalities presented early.
Financiang Infrastructural Development in ZimbabweVincent Mutsvene
There are 88,100 km of classified roads in Zimbabwe, 17,400 km of which are paved .About 5 percent of the network is classified as primary roads and has some of the most trafficked arterials that link Zimbabwe with its neighbors. A portion of the Pan-Africa Highway passes through Zimbabwe. This part of the road network plays a major role in the movement of the country’s imports and exports as well as transit freight.
However lately due to fiscal constraints and budgetary ills, the road network has rapidly deteriorated and can be described as in intensive care. There is need for rehabilitation, maintenance and construction of new roads especially the Beitbridge- Chirundu highway ( a transit corridor) linking South Africa and the upper parts of Africa. Road carnage have been prevalent and the busy road is narrow and can not contain the level of traffic flow operating there.
A developmental Imperative therefore presents itself on how to finance the road construction against compiling government developmental initiatives. A financing mechanism is therefore proposed in this presentation. This Innovative finance model ensure private capital investments funding development against government financing. This provides a breather to the government as they focus on other initiatives and the private sector wins through greater financial and social returns inherent in these financing structures.
The infrastructure sector contribution to sustainable development - MOOC FFD ...Marco Pittalis
The paper presents the relevance of the infrastructure sector to sustainable development, with particular regard to its central role within the Sustainable Development Goals, and details the financing requirements and financing modalities options to support the implementation of required interventions in the sector. The discussion is concluded introducing basic climate change concepts related to the infrastructure sector, presenting for each infrastructure subsector a number of mitigation options that could be implemented with the financing resources mobilized following the modalities presented early.
Financiang Infrastructural Development in ZimbabweVincent Mutsvene
There are 88,100 km of classified roads in Zimbabwe, 17,400 km of which are paved .About 5 percent of the network is classified as primary roads and has some of the most trafficked arterials that link Zimbabwe with its neighbors. A portion of the Pan-Africa Highway passes through Zimbabwe. This part of the road network plays a major role in the movement of the country’s imports and exports as well as transit freight.
However lately due to fiscal constraints and budgetary ills, the road network has rapidly deteriorated and can be described as in intensive care. There is need for rehabilitation, maintenance and construction of new roads especially the Beitbridge- Chirundu highway ( a transit corridor) linking South Africa and the upper parts of Africa. Road carnage have been prevalent and the busy road is narrow and can not contain the level of traffic flow operating there.
A developmental Imperative therefore presents itself on how to finance the road construction against compiling government developmental initiatives. A financing mechanism is therefore proposed in this presentation. This Innovative finance model ensure private capital investments funding development against government financing. This provides a breather to the government as they focus on other initiatives and the private sector wins through greater financial and social returns inherent in these financing structures.
OECD project on institutional investors and long term investment - Raffaele D...OECD Governance
This presentation was made by Raffaele Della Croce, OECD, at the 8th meeting of Senior Public-Private Partnerships and Infrastructure Officials held in Paris on 23-24 March 2015.
The World Bank's framework for assessing PIM systems - Anand Rajaram, World B...OECD Governance
This presentation was made by Anand Rajaram, World Bank, at the 8th Meeting of Senior Public-Private Partnerships and Infrastructure Officials held in Paris on 23-24 March 2015.
This presentation was made by Isabel Rial, IMF, at the 8th meeting of Senior Public-Private Partnerships and Infrastructure Officials held in Paris on 23-24 March 2015.
UCLG Congress 2012 - Linking Cities to FinancingYIPD_Indonesia
This document was prepared by the Yayasan Inovasi Pemerintahan Daerah (YIPD) in cooperation with GFA as part of the Sub-National Implementation of Decentralization as Contribution to Good Governance program (DeCGG-SNI).
How the Financial Crisis has Changed the Market for Public Private Partnershi...icgfmconference
“How the Financial Crisis has Changed the Market for
Public Private Partnerships (PPPs)”
Filip Drapak, Senior Specialist, World Bank Institute
Andy Wynne, Public Sector Financial Management Specialist
The panelists will describe the current context for PPP, outlining the key issues arising as a result of the financial crisis and providing guidance on what to do now and looking forward.
The moderator will open the floor to an open discussion to address questions such as:
What is the role of infrastructure and PPPs in economic renewal?
Is private sector investment in public infrastructure now a viable alternative to
direct public investment?
How does risk profile change as a result of the financial crisis?
What is the role of development agencies?
What actions should countries take now to capitalize on PPP opportunities?
Transport sectors projects are very political entities and governments are still held responsible should there be revenue short fall or distressed situation. further modes of transport do compete with each other but in a limited manner, however, global threats nowadays require certain redundancy in transport network, this affects PPP structure!
Also experience suggests that negotiations between public authorities and prospective concessionaires are rather asymmetrical, and lead to asymmetric risk sharing. Concessionaires have extraordinary bargaining powers as they know no competition exists after the concession is signed.
Tackling 10 tough questions regarding your cost reduction initiativeBrian Channon
Tackling these and other questions upfront will go a long way in strengthening transparency and enhancing communications around your organization's cost reduction effort.
OECD project on institutional investors and long term investment - Raffaele D...OECD Governance
This presentation was made by Raffaele Della Croce, OECD, at the 8th meeting of Senior Public-Private Partnerships and Infrastructure Officials held in Paris on 23-24 March 2015.
The World Bank's framework for assessing PIM systems - Anand Rajaram, World B...OECD Governance
This presentation was made by Anand Rajaram, World Bank, at the 8th Meeting of Senior Public-Private Partnerships and Infrastructure Officials held in Paris on 23-24 March 2015.
This presentation was made by Isabel Rial, IMF, at the 8th meeting of Senior Public-Private Partnerships and Infrastructure Officials held in Paris on 23-24 March 2015.
UCLG Congress 2012 - Linking Cities to FinancingYIPD_Indonesia
This document was prepared by the Yayasan Inovasi Pemerintahan Daerah (YIPD) in cooperation with GFA as part of the Sub-National Implementation of Decentralization as Contribution to Good Governance program (DeCGG-SNI).
How the Financial Crisis has Changed the Market for Public Private Partnershi...icgfmconference
“How the Financial Crisis has Changed the Market for
Public Private Partnerships (PPPs)”
Filip Drapak, Senior Specialist, World Bank Institute
Andy Wynne, Public Sector Financial Management Specialist
The panelists will describe the current context for PPP, outlining the key issues arising as a result of the financial crisis and providing guidance on what to do now and looking forward.
The moderator will open the floor to an open discussion to address questions such as:
What is the role of infrastructure and PPPs in economic renewal?
Is private sector investment in public infrastructure now a viable alternative to
direct public investment?
How does risk profile change as a result of the financial crisis?
What is the role of development agencies?
What actions should countries take now to capitalize on PPP opportunities?
Transport sectors projects are very political entities and governments are still held responsible should there be revenue short fall or distressed situation. further modes of transport do compete with each other but in a limited manner, however, global threats nowadays require certain redundancy in transport network, this affects PPP structure!
Also experience suggests that negotiations between public authorities and prospective concessionaires are rather asymmetrical, and lead to asymmetric risk sharing. Concessionaires have extraordinary bargaining powers as they know no competition exists after the concession is signed.
Tackling 10 tough questions regarding your cost reduction initiativeBrian Channon
Tackling these and other questions upfront will go a long way in strengthening transparency and enhancing communications around your organization's cost reduction effort.
Scaling Dubsmash's backend from 0 to 100+ million users Daniel Taschik
Dubsmash grew faster than any other app before. This presentation has been given at the PyConDE 2016 in Munich by Daniel Taschik, Co-Founder and CTO of Dubsmash. It gives insight into the evolution of Dubsmash's infrastructure, that the team scaled from 0 to over 100 million users in 12 months.
Challenges and insight into the used technologies and services are being showed. Find out more and check our tech blog at https://tech.dubsmash.com
Vous trouverez ci-dessous quelques stratégies du Guide de stratégies d’interventions orientantes (3e édition) conçues et produites par des finissants de la maîtrise en carriérologie, pour la plupart aujourd’hui conseillers d’orientation membres de l’Ordre des conseillers et des conseillères d’orientation du Québec. En vous les partageant, nous faisons le souhait que vous saurez non pas les reproduire telles quelles, machinalement, mais les adapter à votre tour en fonction des réalités de vos clientèles et de vos milieux respectifs. Après tout, être professionnel, c’est aussi être un créatif rigoureux !
SKYMT|Analyzing and investing in global infrastructure projectsDestinyNixon
Global infrastructure investments offer stable cash flows, diversification, and growth potential. Assessing risks and engaging advisors is crucial for strategic investments.
Is p3 the cause of private investment decline in public infrastructureDaniel Melo
Ideas about how to improve the financing, transparency, and efficiency in infrastructure projects implementation and management are needed. It is essential to attract investors to help to leverage the much-needed growth in this sector at good rates of returns and well-managed risks.
This article provides a general overview of current trends in relation to the implementation and financing of P3 infrastructure projects in Colombia, Mexico and Peru, three Latin American countries currently attracting a large volume of investment.
Innovation’s Role in Mobilizing Private Financing Javier Mozó
Final presentation of the World Bank MOOC "Financing for Development / Billions to Trillions to Action". This PPT was made in Dec 2015. Its been some time and therefore Caaapital has changed a bit in its focus and tools, but the core objectives and ideas shown on this presentation remain the same.
Private sector in infrastructure funding/financing models and role of institu...OECD Governance
Presentation made by Raffaele Della Croce, Financial Affairs Division & Dejan Makovsek, Investment Division, OECD, at the 9th annual network meeting of Senior Infrastructure & PPP Officials held at the OECD, Paris, on 1 March 2016
The Impact of the Financial Crisis on Public Private Partnerships
Filip Drapak, Senior PPP Specialist, World Bank
Public Private Partnerships have been an innovative technique to fund large government projects. How the financial crisis has changed this approach will be the subject of this discussion.
Infrastructure Finance – Building for Growth - Funding of Infrastructure Proj...Resurgent India
Infrastructure projects were funded by equity, bank/institutional borrowings, loans from holding companies, viability gap funding, soft loans, revenue shortfall loans and funding from multilateral financial institutions, IIFCL etc
Towards a Framework for the Governance of InfrastructureOECD Governance
This working paper sets out by presenting concepts and challenges for public infrastructure followed by suggested preconditions for good infrastructure governance. It presents an infrastructure decision tree that can guide countries in assessing and balancing their specific sectoral, country, and project needs in order to select a fitting infrastructure delivery modality. www.oecd.org/gov/budgeting
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Similar to Financial for development final project (20)
Have you ever wondered how search works while visiting an e-commerce site, internal website, or searching through other types of online resources? Look no further than this informative session on the ways that taxonomies help end-users navigate the internet! Hear from taxonomists and other information professionals who have first-hand experience creating and working with taxonomies that aid in navigation, search, and discovery across a range of disciplines.
0x01 - Newton's Third Law: Static vs. Dynamic AbusersOWASP Beja
f you offer a service on the web, odds are that someone will abuse it. Be it an API, a SaaS, a PaaS, or even a static website, someone somewhere will try to figure out a way to use it to their own needs. In this talk we'll compare measures that are effective against static attackers and how to battle a dynamic attacker who adapts to your counter-measures.
About the Speaker
===============
Diogo Sousa, Engineering Manager @ Canonical
An opinionated individual with an interest in cryptography and its intersection with secure software development.
Sharpen existing tools or get a new toolbox? Contemporary cluster initiatives...Orkestra
UIIN Conference, Madrid, 27-29 May 2024
James Wilson, Orkestra and Deusto Business School
Emily Wise, Lund University
Madeline Smith, The Glasgow School of Art
This presentation by Morris Kleiner (University of Minnesota), was made during the discussion “Competition and Regulation in Professions and Occupations” held at the Working Party No. 2 on Competition and Regulation on 10 June 2024. More papers and presentations on the topic can be found out at oe.cd/crps.
This presentation was uploaded with the author’s consent.
Acorn Recovery: Restore IT infra within minutesIP ServerOne
Introducing Acorn Recovery as a Service, a simple, fast, and secure managed disaster recovery (DRaaS) by IP ServerOne. A DR solution that helps restore your IT infra within minutes.
1. Understanding the challenges for infrastructure finance
1. Introduction
Infrastructure is an input to a wide range of industries and, as such, an important driver of
long-term growth. At the same time, delays in the realisation of infrastructure projects
pose potentially large economic and social costs. And those projects which are realised
are sometimes badly designed and cannot deliver the expected performance. In some
emerging markets, the lack of well-performing infrastructure holds back economic
development. But also in advanced economies, a lack of investment in well-designed
transport, renewable energy, and social infrastructure is becoming more evident.
The main impediment to greater infrastructure investment cannot be the lack of available
financing – given abundant funds in world markets and very low long-term interest rates.
The problem is rather that of matching the supply of finance from the private sector with
investable projects. The potential supply of long-term financing is ample. Pension funds,
insurance companies and other long-term institutional investors have very large and
growing long-term liabilities. Hence they need long-term assets. But very little of their
financial resources is allocated to infrastructure. In addition, the vast financing potential
of international capital markets remains largely untapped. Private investors could not
only help to provide the financing, but also help to ensure that a project is run efficiently.
If contracts are designed properly, private investors have an incentive to see that an
infrastructure project is executed efficiently – because it increases the likelihood that their
investment is safe and as profitable as expected. The challenge for project owners, and
hence the public sector, is to design contracts such that the risks and returns are
distributed in an incentive-compatible way. As private sector involvement can improve
both the execution and the financing of a project, the crucial role of the public sector is to
provide the right conditions to reap those benefits. Apart from a proper contractual
structure, a solid legal framework is crucial. Infrastructure projects are long term and
political risks loom large for investors. Investors will be prepared to commit large sums
of financing at long horizons only if they can trust the legal and political procedures. But,
mobilising the necessary funds to satisfy the growing demand for infrastructure
investment will require new sources and instruments of finance. Currently, the lion’s
share of the growth in infrastructure financing is shouldered by banks. Banks will remain
important financiers, in particular in the early stages of new projects. But banks, which
have mostly short-term liabilities, are not well-placed to hold long-term assets on their
balance sheets for an extended period of time. Therefore, a much broader group of
investors needs to be targeted. Bonds would be suitable instruments for large institutional
investors, such as pension funds and 2 WP454 Understanding the challenges for
infrastructure finance insurance companies with their long-term liabilities. Development
banks and export credit agencies, which have a crucial role in financing infrastructure
investments in both developing and developed countries, may be able to enhance the
efficiency of their finite resources by the judicious use of financial instruments such as
guarantees or mezzanine capital. In addition, other new forms of finance, such as
2. Understanding the challenges for infrastructure finance
infrastructure investment funds, can help to tap some of the vast resources of
international capital markets. Importantly, a broader mix of financial instruments would
also allow a better diversification of risks among a boarder group of investors. The
remainder of the paper is structured as follows. The next section illustrates the
significance of the infrastructure gap and argues that a key issue for the public sector is
the development of a predictable pipeline of well-structured projects. The following
sections then turn to the main impediments to increasing the supply of financing. Section
3 identifies the key economic characteristics and difficulties of infrastructure projects and
infrastructure financing. Section 4 describes the different phases of infrastructure
projects, which each require a different mix of financing instruments. Section 5 outlines
the elements of successful contractual design of infrastructure projects. Section 6 outlines
the potential financing instruments for the construction phase, the developments in the
syndicated project loan market, and the role of development banks and export credit
agencies. Section 7 looks at the potential of bonds and new financing instruments. The
final section concludes. 2. The infrastructure bottleneck Infrastructure financing will need
to come increasingly from the private sector. The demand for infrastructure investments
is likely to grow faster than output, and therefore tax revenues. A McKinsey study
estimates that the share of total infrastructure financing in GDP will need to increase
from around 3.8% to 5.6% in 2020 worldwide (McKinsey Global Institute (2012)). In
emerging markets, the required increase would be even more pronounced. Analysis for
the G20 suggests that developing countries will need to invest an additional $1 trillion a
year up to 2020 to keep pace with the demands of urbanisation, and better global
integration and connectivity (G20 (2013)). Developed countries will likely need to invest
a similar amount to finance low-carbon emission energy projects through 2050; on top of
necessary investments into transport and social infrastructure at potentially similar
amounts. While additional government funding for new infrastructure may come from
privatisation of existing infrastructure assets, this is unlikely to be enough. For many
infrastructure projects, such as military infrastructure or public schools, pure public
procurement may be the only feasible option and may absorb large shares of public
funding capacity. The key sources of increasing infrastructure demand, such as the large
infrastructure gap in developing economies or the shift to renewable energy sources in
developed economies will therefore require additional sources of financing from the
private sector.
2.1 Pipelines of investable projects
A major reason for the apparent mismatch between infrastructure investment demand and
the supply of infrastructure finance is the lack of a pipeline of properly structured
projects. Infrastructure investments entail complex legal and financial arrangements,
requiring a lot of expertise. Otherwise, the costs can easily outweigh the potential
benefits of investing into infrastructure over other, less complex, asset classes. Creating a
pipeline of suitable projects requires a coherent and trusted legal framework for
3. Understanding the challenges for infrastructure finance
infrastructure projects. In some countries, those frameworks do not exist. Political risk is
among the greatest concerns of private investors (OECD (2014)). The arbitrary exercise
of political power can take many forms: sudden cuts in the prices private infrastructure
operators are allowed to charge; new regulations; or the unilateral renegotiation of
existing contracts by new governments. But even where solid legal frameworks exist,
governments can still fall short of best practices. Positive efforts are needed to correct
this
Understanding the challenges for infrastructure finance This requires effective private
investor involvement. Investors expect adequate returns in compensation for the risks
they are taking. But infrastructure projects only generate positive cash flows and
consequently positive financial value after many years. Infrastructure provides services,
often to very many: correctly pricing such services and valuing the proceeds from the
provision of services should be the starting point for setting up properly structured and
investable infrastructure projects. Understanding the economics of infrastructure projects
and the unique challenges involved in infrastructure finance is pertinent to addressing
these problems.
2.2.What makes infrastructure special and its financing difficult? Infrastructure assets
from other asset classes.
Difficult to match investment demand and financing supply:
i. the direct payoffs to an owner of an infrastructure project may not cover its costs,
ii. the indirect externalities can still be hugely beneficial for the economy as a whole.
iii. externalities include large benefits of infrastructure services to a wide range of other
2.3. Infrastructure projects are often complex and involve a large number of parties.
Often comprises natural monopolies such as highways or water supply, and hence
governments want to retain the ultimate control to prevent an abuse of monopoly power.
This requires complex legal arrangements to ensure proper distribution of payoffs and
risk-sharing to align the incentives of all parties involved, measures which need to ensure
that governments respect pre-agreed contracts.
3. Many infrastructure investments generate cash flows only after many years and the
initial phase of an infrastructure project is subject to high risks
i .Time profile of cash flows,
ii. High initial risks and
iii. Illiquidity
4. Understanding the challenges for infrastructure finance
make purely private investment difficult and costly. Although infrastructure investments
are potentially hugely profitable for the economy as a whole, they are especially subject
to market failures. Markets alone will often fail to provide these services – either because
an infrastructure project would not be profitable on its own, or because the associated
risks are too large or too costly to insure. As a result, infrastructure investment from the
private sector in many cases cannot be realised without some form of public support. This
may take the form of direct financial support or some form of insurance. In turn, the
necessary involvement of a wide range of parties in infrastructure projects – construction
companies, operators, government authorities, private investors, insurers and the WP454
Understanding the challenges for infrastructure
Design an efficient set of contracts. Issues such as the incentive-compatibility of
contracts, the nature of contingencies and the proper sharing of risks among the different
agents are pivotal. The quality of institutions and the rule of law are often determining
factors in the supply of infrastructure finance, even when a project by itself appears to be
financially viable.
4. Different financing instruments for different phases of infrastructure finance TA
typical project has several distinct phases. Each phase exhibits different risk and
return characteristics, and each faces different incentive problems and calls for a
different role for governments, banks and capital markets. Hence, each phase requires
a different mix of financial instruments to cover different risk and return profiles –
and so targets different types of investors.
Table of illustration
Phasesof infrastructure projectsandtheircharacteristics
5. Understanding the challenges for infrastructure finance
Phase
Economic and contractual
issues Financial characteristics Potential investors
Planning
Contracts are written in the
planning phase and are crucial to
the success ofprojects.The
planning phase can take a long
time (10 to 30 months) and the
involved parties may attempt to
renegotiate contract
commitments. Ratings from
rating agencies are important to
secure interest from debt
investors,as are credit insurance
or government guarantees.
The procuring authority needs to
find equity investors.The equity
sponsorneeds to secure
commitments by debt investors
(mostly banks). Given the long
planning period, early
commitments by debt investors
come at a high cost. Leverage can
be high (10:1 or more).
Equity sponsors need a high level of
expertise. They are often construction
companies or governments.In rare
cases,infrastructure funds (Australia,
Asia) or direct investments by pension
funds (Canada) may be involved. Debt
investors are mostly banks through
(syndicated)loans. Bond financing is
rare, as projects carry high risks in the
initial phases.
construction
Monitoring incentives are
essential. Private involvement
(as opposed to purely public
investment) can ensure this
This is a high-risk phase.
Unexpected events are likely due
to the complexity of infrastructure
projects. Default rates are
relatively high. Initial
commitments by debt-holders
must extend far beyond this stage,
as a project does not generate cash
flows in this phase.
Refinancing or additional financing is
very difficult and costly at this stage.
Equity sponsors may have an incentive
to provide additional finance if risks
materialize.
operational
Ownership and volatility of cash
flows due to demand risks are
key. Models such as flexible
term present value contracts and
availability-based fees reduce
volatility, risk and financing
costs,but have adverse incentive
effects.
Positive cash flows. The risk of
default diminishes considerably.
Refinancing of debt (bank loans) from
the initial phase.Bonds are a natural
choice, but they are not very common.
Refinancing with bank loans or
government funds is common.