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The 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, Georgina
Developing 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.
Recent 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 Karina
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.
India Leads Developing Nations in Private Sector Investment : But the Region Needs More Investment to Meet Demands
(World Bank, Washington, DC, 2008-03) Harris, Clive
India 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.
Revival of Private Participation in Developing Country Infrastructure
(World Bank, Washington, DC, 2007-01) Kerf, Michel; Izaguirre, Ada Karina
Investment in private participation in infrastructure projects in developing countries in 2004 and 2005 increased sharply. Meanwhile, the distribution of investment across sectors and regions, and the allocation of risks between public and private parties, were shifting. Private sponsors started putting more emphasis on risk mitigation strategies. To take advantage of private sponsors' renewed interest in infrastructure projects, governments need to create risk sharing arrangements that attract private operators while also benefiting governments, taxpayers, and users.
The Role of Developing Country Firms in Infrastructure : A New Class of Investors Emerges
(World Bank, Washington, DC, 2006-04) Schur, Michael; von Klaudy, Stephan; Dellacha, Georgina
Developing country investors have emerged as a major source of investment finance for infrastructure projects with private participation. The potential role of this investor class is encouraging. For policymakers it suggests a need to rethink privatization design, particularly the criteria used in selecting investors, which have been biased toward large international firms. The growth in new private infrastructure firms also matters because it should reduce the risk of collusion and other anticompetitive practices. This paper discusses the role of developing country investors, and their investment across regions.