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PublicationPrivate Participation in Transport : Lessons from Recent Experience in Europe and Central Asia(World Bank, Washington, DC, 2009-06) Monsalve, CarolinaFacing fiscal constraints, many governments in Central and Eastern Europe and Southeastern Europe have pursued private finance for transport infrastructure more to move investments off budget than to improve efficiency and services. Results have been mixed and suggest a need to focus more on public-private partnerships (PPPs) that can achieve value for money. Today's economic environment will reduce the potential for PPP projects in the short term. Some PPP projects at an advanced stage of procurement may need additional public support, while ambitious projects may need to be phased to reduce their scale to what the market can absorb. PublicationWhat Drives Private Sector Exit from Infrastructure? Economic Crises and Other Factors in the Cancellation of Private Infrastructure Projects in Developing Countries(World Bank, Washington, DC, 2009-03) Harris, Clive; Pratap, Kumar V.The private sector exits only a fraction of private infrastructure projects before the contract ends. Yet such cancellations can have a sustained impact on a country's program of public-private partnerships, reducing the private sector's confidence in the government's commitment as well as the government's confidence in the robustness and "value for money" of these arrangements. Econometric analysis shows that macroeconomic shocks nearly double the cancellation rate. As today's global financial crisis greatly increases the cost, and reduces the availability, of project financing, the number of cancellations could grow. That would have implications for the role public-private partnerships can play in meeting the infrastructure needs of developing countries. PublicationThe Changing Landscape of Infrastructure Finance in Africa : Nontraditional Sources Take on a Growing Role(World Bank, Washington, DC, 2008-10) Foster, VivienAfrica has traditionally depended on official development assistance to meet its infrastructure needs. But a growing share of the region's infrastructure finance is now coming from nontraditional sources. Leading this trend is non-Organization for Economic Co-operation and Development (OECD) financiers, chiefly China, India, and Arab countries. While Arab funds have been operating in Africa for decades, China and India began to step up their involvement in the early 2000s. Flows from these non-OECD sources are now broadly comparable to traditional development assistance in dollars committed. The largest flows have gone to power especially hydropower and rail transport. PublicationChina's Emerging Role in Africa : Part of the Changing Landscape of Infrastructure Finance(World Bank, Washington, DC, 2008-10) Foster, Vivien; Chen, Chuan; Pushak, NataliyaIn 2006, which China named the "Year of Africa," it quadrupled its investment commitments to infrastructure in Sub-Saharan Africa, to more than $7 billion. In 2007 China committed another $4.5 billion. Such funds could make a significant contribution toward meeting Africa's infrastructure investment needs. In the power sector, where Africa faces some of its largest gaps, China is investing $5.3 billion, including $3.3 billion in projects that, if completed, will increase the region's hydro generation capacity by 30 percent. China's growing role in Africa has generated much discussion. A new study seeks to add concrete numbers and solid analysis. PublicationUnlocking Land Values to Finance Urban Infrastructure : Land-Based Financing Options for Cities(World Bank, Washington, DC, 2008-08) Peterson, George E.Raising capital to finance urban infrastructure is a challenge. One solution is to 'unlock' urban land values - such as by selling public lands to capture the gains in value created by investment in infrastructure projects. Land-based financing techniques are playing an increasingly important role in financing urban infrastructure in developing countries. They complement other capital financing approaches, such as local government borrowing, and can provide price signals that make the urban land market more efficient. PublicationThe Role of Developing Country Firms in Infrastructure : New Data Confirm the Emergence of a New Class of Investors(World Bank, Washington, DC, 2008-06) Schur, Michael; Klaudy, Stephan von; Pushak, Nataliya; Sanghi, Apurva; Dellacha, GeorginaDeveloping country investors have emerged as a major source of investment finance for infrastructure projects with private participation. This update of the article in 2006, shows that, indeed, during 1998-2006 these investors accounted for more of this finance in South Asia and East Asia and Pacific, and for more in transport across developing regions than did investors from developed countries. Even though the policy implications are not yet fully clear for policy makers, this development suggests a need to rethink the criteria used in selecting investors in schemes for private participation, which have been biased toward large international operators. PublicationRecent Trends in Private Activity in Infrastructure : What the Shift Away from Risk Means for Policy(World Bank, Washington, DC, 2008-05) Mästle, Clemencia Torres de; Izaguirre, Ada KarinaIn 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. PublicationWorldwide Trends in Private Participation in Roads : Growing Activity, Growing Government Support(World Bank, Washington, DC, 2008-05) Queiroz, Cesar; Izaguirre, Ada KarinaPrivate participation in roads revived strongly in developing countries in 2005-06. The activity was concentrated in green field projects and in Asia and Latin America. The main reason for the revival has been the willingness of governments to provide support needed to attract the private sector. Nevertheless, governments need to be aware of the potential risks of such support. And because of the monopolistic features of road projects, they also need to ensure good governance so that the public reaps the full benefits of the private sector's involvement. PublicationAre Brownfield Concessions Poised for a Comeback? New Signs of Life After a Decade in Decline(World Bank, Washington, DC, 2008-05) Leigland, JamesOnce expected to be the signature contract of private participation in infrastructure and for a time its fastest growing form, the brown field concession was hit hard by the Asian crisis and has never recovered. Because these contracts involve existing, usually dilapidated government assets, brown field concessions tackled the toughest infrastructure problems in the developing world. But the Asian crisis exposed the fragility of this mechanism, and its sudden unpopularity almost single-handedly crashed the developing world market for private participation in infrastructure. PublicationIndia Leads Developing Nations in Private Sector Investment : But the Region Needs More Investment to Meet Demands(World Bank, Washington, DC, 2008-03) Harris, CliveIndia has had the most success attracting more private investment in infrastructure in 2006 than any other developing country. Long-standing policies in most other South Asian countries are beginning to bear fruit as well. Nevertheless, delivering the infrastructure services needed to sustain and accelerate growth in South Asia remains a major challenge. Estimates suggest that closing the gap in service provision and meeting future needs will require infrastructure investment in the range of 7 to 8 percent of Gross Domestic Product (GDP) a year. The private sector can do more to help close the region's infrastructure service deficit. But first the region's governments will need to close the infrastructure policy deficit, manifested in many sectors in distorted pricing, poor governance and accountability, and weak financial and operational performance.