Private Participation in Infrastructure Database

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

Items in this collection

Now showing 1 - 10 of 12
  • Publication
    Investment Commitments and the Number of New Projects Decline in the Middle East and North Africa
    (World Bank, Washington, DC, 2009-12) Izaguirre, Ada Karina; Perard, Edouard
    Private activity in infrastructure in the Middle East and North Africa declined sharply in 2008, according to just-released data from the Private Participation in Infrastructure Project database. Both investment commitments and the number of new projects declined, in both the first and second half of the year. Existing telecommunications operators accounted for most of the annual investment. The region's share of total investment commitments in developing countries in 2008 was less than 4 percent, down significantly from its 7.3 percent share in 2007. In 2008, 10 infrastructure projects with private participation reached financial or contractual closure in six low- or middle-income countries in the region. These involve investment commitments (hereafter, investment) of US$2.4 billion. Infrastructure projects implemented in previous years had additional commitments of US$3.6 billion, bringing total investment in 2008 to US$6 billion. This level represented a 49 percent drop from that in 2007 and was the lowest since 2003.
  • Publication
    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.
  • Publication
    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.
  • Publication
    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.
  • Publication
    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.
  • Publication
    Investment Commitments to Telecommunications Continued at Peak Levels in 2008
    (World Bank, Washington, DC, 2009-11) Izaguirre, Ada Karina; Jett, Alexander N.
    Investment commitments to telecommunications projects with private participation in low- and middle-income countries amounted to US$78.1 billion in 2008, according to just-released data from the Private Participation in Infrastructure Project database. This level of investment commitments (hereafter, investment) represents an increase of around 1 percent from the previous peak reached in 2007. As before, investment was driven by projects implemented in previous years. Projects that reached financial closure in 1990-2007 attracted investment of US$74.7 billion, while new projects implemented in 2008 accounted for US$3.4 billion. Investment in physical assets (that is, network expansion) grew by 7 percent to US$71.6 billion, reaching a new peak for the fourth consecutive year. Payments to the government (such as spectrum or concession fees and divestiture revenues) fell by 37 percent to US$6.5 billion, the lowest level since 2004. The data do not allow the separation by semester of additional investment in existing projects to see whether such investment slowed in the second half of the year with the full onset of the financial crisis. But its slower growth in 2008 as a whole compared with the previous four years suggests a more cautious approach to capital expenditure.
  • Publication
    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.
  • Publication
    Private Activity in Energy Down, But Still Around Peak Levels
    (World Bank, Washington, DC, 2009-11) Izaguirre, Ada Karina; Perard, Edouard
    Private activity in energy showed mixed results in 2008, according to just-released data from the Private Participation in Infrastructure Project database. Although investment commitments to energy projects with private participation were down, they remained strong at the third highest level in 1990-2008. Activity in the first half of 2008 kept investment at a high level for the year. Investment slowed in the second half with the full onset of the financial crisis. The slowdown in the second half also led to a decline in the number of projects for the year. In 2008, 86 energy projects with private participation reached financial or contractual closure in 23 low- and middle-income countries. These involve investment commitments (hereafter, investment) of US$37.2 billion. Energy projects implemented in previous years had additional commitments of US$10.39 billion, bringing total investment in 2008 to US$47.5 billion. That represents a drop of 7 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, investment in physical assets, which amounted to US$38.7 billion in 2008, was up 6 percent from that reported in 2007.
  • Publication
    Investment Commitments in Latin America and the Caribbean Increased in 2007
    (World Bank, Washington, DC, 2008-12) Izaguirre, Ada Karina; Jett, Alexander Nicholas
    Investment commitments to infrastructure projects with private participation in Latin America and the Caribbean grew by 28 percent to US$38.3 billion in 2007, according to just-released data from the private participation in infrastructure project database. The region accounted for 24 percent of the year's total investment commitments in developing countries. Despite having grown for four consecutive years, investment commitments remained well below the region's peak levels reached in 1997-98. Investment in 2007 was just 44 percent of the peak in 1998. Previously implemented projects largely drove the 2007 investment. Projects reaching financial or contractual closure in 1990-2006 attracted US$22.3 billion, while the 46 new projects implemented in 2007 accounted for US$16 billion. Investment in physical assets amounted to US$32.5 billion. Indeed, if only investment in physical assets were counted-that is, excluding payments to the government (such as divestiture revenues and spectrum or concession fees) investment in 2007 would be just 22 percent below the peak level of 1998.
  • Publication
    New Private Infrastructure Projects in Developing Countries Have Started Being Affected by the Financial Crisis
    (World Bank, Washington, DC, 2008-12) Izaguirre, Ada Karina
    New private activity continued to take place in developing countries in Aug-Nov 2008 with projects being developed, tendered, and taken to financial close, but at a rate that was about 40 percent lower than in the same period in 2007. The slowdown reflects an initial impact of the financial crisis which has made financing more onerous and difficult to secure as access to capital markets and bank lending has been reduced or halted and risk perception increased. Projects are facing higher cost of financing, but the major impact to date is project being delayed or cancelled. It is, however, too early to assess the full impact of the crisis on new Public-Private Investment (PPI) projects. Many investors and financiers are in a wait-and-see mindset and are likely to be so for the next 3 to 6 months or until the breadth and depth of the crisis impact become clearer. When financial markets bottom out or start to recover, project financing levels are likely to remain impacted over a significant period of time if the trends shown in previous financial crises are repeated. 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 and more conservative structures. The expected economic downturn in developed and developing countries is also likely to reduce demand levels and have a significant impact on project revenues, and consequently on projects' financial viability.