Recent Trends in Private Activity in Infrastructure : What the Shift Away from Risk Means for Policy

Recent Trends in Private Activity in Infrastructure : What the Shift Away from Risk Means for Policy

In 2006, private participation in infrastructure continued its recovery for the third consecutive year from the steep downturn of the late 1990s. Activity was more evenly spread across all developing regions. However, it became more concentrated in less risky sub sectors, reflecting a lower appetite for risk among private investors. Greater selectivity has facilitated private sector's renewed interest, but it also raises questions about how governments can best tap private operators' abilities in high-need, high-risk areas such as water and electricity distribution. Recent projects in these areas indicate that the public sector together with the international financial institutions remains the main source of investment funding. As governments create arrangements to attract private participation, they also need to ensure an equitable distribution of benefits among investors, taxpayers, and service users.

Saved in:
Bibliographic Details
Main Authors: Mästle, Clemencia Torres de, Izaguirre, Ada Karina
Language:English
Published: World Bank, Washington, DC 2008-05
Subjects:AIRPORTS, CAPITAL MARKET, COMPETITIVE MARKETS, CONSUMER PRICE INDEX, CONTRACT DESIGNS, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPING COUNTRY INVESTORS, DISBURSEMENTS, ECONOMICS, EQUITY INVESTMENT, EXPOSURE, GOVERNMENT FUNDING, GOVERNMENT GUARANTEES, GROSS DOMESTIC PRODUCT, INCOME, INCOME GROUPS, INFRASTRUCTURE PROJECTS, INTERNATIONAL DEVELOPMENT, INTERNATIONAL FINANCIAL INSTITUTIONS, INVESTING, INVESTMENT COMMITMENTS, INVESTMENT FUNDING, INVESTMENT GROWTH, INVESTMENT IN ROADS, INVESTMENT PROGRAMS, LOW-INCOME COUNTRIES, MIDDLE EAST, MIDDLE-INCOME COUNTRIES, MINIMUM REVENUE GUARANTEES, NEW MARKETS, NORTH AFRICA, PHYSICAL ASSETS, POLITICAL RISK, PRIVATE CAPITAL, PRIVATE CAPITAL MARKET, PRIVATE EQUITY, PRIVATE INFRASTRUCTURE, PRIVATE INVESTORS, PUBLIC-PRIVATE PARTNERSHIP, PUBLIC-PRIVATE PARTNERSHIPS, RAIL, RAILWAYS, RAPID GROWTH, RETURN, ROADS, SANITATION, SHARE OF INVESTMENT, SUB-SAHARAN AFRICA, SUBWAY, SUSTAINABLE DEVELOPMENT, TECHNICAL ASSISTANCE, TELECOMMUNICATIONS, TOLLS, TRANSPORT, TRANSPORT FACILITIES, TRANSPORT INVESTMENT, TRANSPORT PROJECTS, URBAN DEVELOPMENT,
Online Access:http://documents.worldbank.org/curated/en/2008/05/9649190/recent-trends-private-activity-infrastructure-shift-away-risk-means-policy
https://hdl.handle.net/10986/10612
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In 2006, private participation in infrastructure continued its recovery for the third consecutive year from the steep downturn of the late 1990s. Activity was more evenly spread across all developing regions. However, it became more concentrated in less risky sub sectors, reflecting a lower appetite for risk among private investors. Greater selectivity has facilitated private sector's renewed interest, but it also raises questions about how governments can best tap private operators' abilities in high-need, high-risk areas such as water and electricity distribution. Recent projects in these areas indicate that the public sector together with the international financial institutions remains the main source of investment funding. As governments create arrangements to attract private participation, they also need to ensure an equitable distribution of benefits among investors, taxpayers, and service users.

Similar Items