Private Participation in Infrastructure Database

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https://hdl.handle.net/10986/9423

This series reviews new private participation in infrastructure (PPI) projects.

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Investment Commitments Reach a New Peak in South Asia While the Number of New Projects Declines
(World Bank, Washington, DC, 2009-12) Izaguirre, Ada Karina; Fitzgerald, Rossa
Private activity in infrastructure in South Asia showed mixed results in 2008, according to just-released data from the private participation in infrastructure project database. Investment commitments to infrastructure projects with private participation reached a new peak thanks to additional investment in existing telecommunications operators and new energy and transport projects that reached financial or contractual closure in the first half of the year. But investment in new projects slowed in the second half of the year with the full onset of the financial crisis. This slowdown led to a decline in the number of projects for the entire year. The region accounted for 22 percent of the year's total investment commitments in developing countries. In 2008, 36 infrastructure projects with private participation reached financial or contractual closure in three South Asian countries (Bangladesh, India, and Pakistan). These projects involve investment commitments of US$17.9 billion. Infrastructure projects implemented in previous years had additional commitments of US$15.4 billion, bringing total investment in 2008 to US$33.4 billion. That represented an increase of 12 percent from the level reported in 2007 and a new peak for the region. Both new and existing projects accounted for the increase. Investment in new projects increased by 8 percent from the level in 2007, while investment in existing projects rose by 18 percent.
Investment Commitments Remain at Peak Level in Europe and Central Asia While the Number of New Projects Declines
(World Bank, Washington, DC, 2009-12) Izaguirre, Ada Karina; Fitzgerald, Rossa
Private activity in infrastructure in Europe and Central Asia showed mixed results in 2008, according to just-released data from the Private Participation in Infrastructure Project database. Investment in new projects slowed sharply in the second half of the year with the full onset of the financial crisis. This slowdown led to a decline in the number of projects for the entire year. The region accounted for 30 percent of the year's total investment commitments in developing countries, the largest share among developing regions. In 2008, 36 infrastructure projects with private participation reached financial or contractual closure in 11 low- or middle-income countries in the region. These involve investment commitments (hereafter, investment) of US$20.3 billion. Infrastructure projects implemented in previous years had additional commitments of US$25.7 billion, bringing total investment in 2008 to US$45.9 billion. That represented an increase of 3 percent from the level reported in 2007 and a new peak for the region. Investment in projects implemented in previous years accounted for the increase, growing by 6 percent from the level in 2007.
Investment Commitments Remain Stable in Latin America While the Number of New Projects Declines
(World Bank, Washington, DC, 2009-12) Izaguirre, Ada Karina; Jett, Alexander Nicholas
Private activity in infrastructure in Latin America and the Caribbean showed mixed results in 2008, according to just-released data from the Private Participation in Infrastructure Project database. Investment in new projects slowed in the second half of the year with the full onset of the financial crisis. This slowdown led to a decline in the number of projects for the entire year. The region accounted for 26 percent of the year's total investment commitments in developing countries, the second largest share among developing regions. In 2008, 41 infrastructure projects with private participation reached financial or contractual closure in eight low- or middle-income countries in the region. These projects involve investment commitments (hereafter, investment) of US$14.6 billion. Infrastructure projects implemented in previous years had additional commitments of US$25.7 billion, bringing total investment in 2008 to US$40.3 billion. That represented an increase of 2 percent from the level reported in 2007. Investment in existing projects, up 12 percent from the level in 2007, drove the increase.
Investment Commitments Reach a New Peak in Sub-Saharan Africa While the Number of New Projects Declines
(World Bank, Washington, DC, 2009-12) Izaguirre, Ada Karina; Perard, Edouard
Private activity in infrastructure in Sub-Saharan Africa showed mixed results in 2008, according to just-released data from the private participation in infrastructure project database. While investment commitments to infrastructure projects with private participation reached a new peak, the number of projects reaching closure continued to decline. Existing telecommunications operators accounted for most regional investment as well as the growth in investment. The region accounted for almost 9 percent of the year's total investment commitments in developing countries. In 2008, 15 infrastructure projects with private participation reached financial or contractual closure in 10 low- or middle-income countries in the region. These involve investment commitments of US$2.7 billion. Infrastructure projects implemented in previous years had additional commitments of US$10.8 billion, bringing total investment in 2008 to US$13.5 billion. That total represented an increase of 10 percent from the level reported in 2007 and a new peak for the region. Investment in existing projects accounted for the increase, growing by 22 percent from the level in 2007. By contrast, investment in new projects fell by 22 percent.
Private Activity in Transport Down for Second Consecutive Year, But Still Around Peak Levels
(World Bank, Washington, DC, 2009-11) Izaguirre, Ada Karina; Jett, Alexander N.
Private activity in transport declined in 2008, with the full onset of the financial crisis driving a slowdown in the second half of the year. Yet while investment commitments to transport projects with private participation were down from the peak levels of the previous two years, they remained strong at the third highest level in 1990-2008. In 2008, 56 transport projects with private participation reached financial or contractual closure in 26 low- and middle-income countries. These involve investment commitments (hereafter, investment) of US$23.1 billion. Transport projects implemented in previous years had additional commitments of US$2.9 billion, bringing total investment in 2008 to US$26 billion. That represents a drop of 10 percent from the level reported in 2007. Lower payments to governments (such as concession or lease fees and divestiture revenues) account for the decline. By contrast, investments in physical assets, which amounted to US$22.6 billion in 2008, were up 3 percent from those reported in 2007. The number of projects continued a marked declining trend. The 56 projects reaching closure in 2008 reflected a 40 percent decline from the level in 2007 and a 53 percent drop from that in 2006. The closure of larger projects explains the divergence in trends between investments and number of projects. The average project size grew from US$150 million in 2004 to US$410 million in 2008, while the median rose from US$57 million to US$230 million.
Private Activity in Infrastructure Down, But Still Around Peak Levels
(World Bank, Washington, DC, 2009-11) Izaguirre, Ada Karina
The report is about the private participation in infrastructure database. In 2008, 216 infrastructure projects with private participation reached financial or contractual closure in 48 low- and middle-income countries. These involve investment commitments (hereafter, investment) of US$66.5 billion. Infrastructure projects implemented in previous years had additional commitments of US$87.9 billion, bringing total investment in 2008 to US$154.4 billion. That represents a drop of 4 percent from the level reported in 2007. Investment in new projects accounted for the decline, falling by 12 percent from the level in 2007. By contrast, investment in projects implemented in previous years was up 3 percent from 2007. When investment is classified by type, it is payments to governments (such as concession or lease fees and divestiture revenues) that explain the drop in total investment. Such payments totaled US$19.1 billion, 42 percent lower than in 2007 and the lowest since 2004. By contrast, investments in physical assets grew by 6 percent from 2007 to reach US$135.3 billion, the highest level in 1990-2008.
New Private Infrastructure Activity in Developing Countries Recovered in the First Half of 2009 Thanks to the Electricity Sector, But the Crisis Continues to Impact Projects
(World Bank, Washington, DC, 2009-10) Izaguirre, Ada Karina
New private activity in infrastructure continues to take place in developing countries despite the financial and economic crisis. New projects are being tendered and brought to financial or contractual closure. Measured by amount of investment, the rate of project closure grew by 2 percent in the first half of 2009 compared to the first half of 2008, indicating a strong recovery from the decline of 48 percent experienced in the second half of 2008. This recovery, however, was driven by large projects. Measured by number of projects reaching closure, the rate of project closure continues to be slower than before the full-scale onset of the financial crisis. The number of projects reaching closure in the first half of 2009 was 20 percent lower than the number reported in the first half of 2008. This trend suggests greater project selectivity. Indeed, those projects that are reaching closure are characterized by strong economic and financial fundamentals, the backing of financially solid sponsors and governments. Developing country governments' continuing commitment to their public-private partnership (PPP) programs is confirmed by the number of new projects tendered and awarded. However, current market conditions are forcing governments and investors to restructure projects to improve financial viability. Local public banks as well as bilateral and multilateral agencies continue to be active in project finance, providing a critical amount of funding. It is too early to assess the full impact of the crisis on new infrastructure projects with private participation (PPI). The crisis continues to make financing (both debt and equity) more difficult to secure, and hamper the ability of governments to maintain financial commitments to public-private infrastructure projects.
Assessment of the Impact of the Crisis on New PPI Projects - Update 4 : New Private Infrastructure Activity in Developing Countries Recovered in the First Half of 2009 Thanks to the Electricity Sector, But the Crisis Continues to Impact Projects
(World Bank, Washington, DC, 2009-10) World Bank
This review of new private participation in infrastructure (PPI) projects, covering the period up to June 2009, sheds some light on the recent activity and the short-term impact of the financial crisis, compared with the previous updates on the impact of the crisis, this note incorporates several improvements: a larger sample size (714 projects versus 522 in the previous update) over a longer period of time (from January 2008 to June 2009 compared to the previous update, which covered January 2008 to March 2009). The survey finds that the financial crisis significantly affected the rate of project closure rate of new PPI projects in the second half of 2008. The impact of the crisis varies across developing regions with Europe and Central Asia (ECA) being the most affected region so far. This analysis will be refined in the coming quarters to assess the extent to which these trends continue.
Assessment of the Impact of the Crisis on New PPI Projects : Update Three
(World Bank, Washington, DC, 2009-06) Izaguirre, Ada Karina
Despite the financial and economic crisis, new private activity in infrastructure continues to take place in developing countries. New projects are still being tendered and brought to financial closure, but at a slower pace. Between July 2008 and March 2009, the rate of project closure fell 15 percent by investment compared to a similar period in the previous year. Investment commitments to private infrastructure projects showed some signs of recovery in the first months of 2009, but this recovery was driven by a few large priority projects in select countries. These projects were able to raise financing thanks to the backing of highly-rated sponsors and their priority status in their respective countries. The financial crisis has made financing (both debt and equity) more difficult to secure, and has hampered the ability of governments to maintain their financial commitments to private infrastructure projects. These projects are facing higher cost of financing a problem compounded by the lower demand for infrastructure services that is beginning to impact some sectors. As a result some planned private infrastructure projects are being delayed, restructured, and, to a lesser extent, cancelled. Transport is the worst affected sector so far, while the most affected group of countries are middle-income countries, especially in the Eastern Europe and Central Asia region.
New Private Infrastructure Projects in Developing Countries Continue to Take Place But Projects are Being Affected by the Financial Crisis
(World Bank, Washington, DC, 2009-03) Izaguirre, Ada Karina
Throughout the financial crisis, new private activity has continued to take place in developing countries with projects being tendered and brought to financial closure. In the first months of the full-scale of the financial crisis (Aug-Nov 2008), the rate of project closure was 26 percent lower than in the same period in 2007. However, since then private activity recovered and the project closure rate in Aug-Dec 2008 was just 15 percent lower than in the same period in the previous year. The slowdown reflects an initial impact of the financial crisis which has made financing (both debt and equity) more onerous and difficult to secure. Infrastructure projects are facing higher cost of financing, and lower demand for infrastructure services is beginning to impact some sectors. The major impact to date is projects being delayed, and, to a lesser extent, cancelled. Transport and energy are the worst affected sectors so far, while Europe and Central Asia (ECA) and upper middle income countries are the most affected groups of countries. It is too early to assess the full impact of the crisis on new Public Private Infrastructure (PPI) projects. Financial markets remain volatile while the financial crisis has now turned into a global economic crisis. As the 'flight to quality' sets in for banks and other financiers, the likely impact will be more stringent financial conditions, not only via higher cost of financing but also with lower debt/equity ratios, reduced maturities and more conservative risk allocation structures.