International Finance CorporationPublic-Private Infrastructure Advisory Facility2013-09-192013-09-192013-04https://hdl.handle.net/10986/15785The purpose of this study is to serve as a guide on developing Greenfield transport infrastructure (rail and port) primarily used to support mining operations ('mining-related infrastructure'), through Public-Private Partnership (PPP) schemes and on a project finance basis. The focus is on key financing issues and considerations, as well as recommendations for governments and private-sector participants, specifically in the context of sub-Saharan Africa and similar regions. Over the past decade, the rapid economic growth in newly industrialized markets has fueled a strong demand for various commodities (such as iron, coal, bauxite and copper), with significant impact on their prices. The last ten years have seen an unprecedented rise in the price of mineral commodities worldwide. From the mid-2000s through the early 2010s, the world's largest mining companies embarked in the planning of numerous and often very large mining projects to satisfy what was seen as an ever growing double digit demand for minerals (iron ore, coal, bauxite, copper, etc). A number of these mining projects are located in frontier countries (e.g. Mongolia, Guinea, Afghanistan, Sierra Leone and Mozambique). This report explores the challenges and solutions associated with the development of Greenfield mining-related transport infrastructure through project financing in frontier countries, including as shared-use assets. From an ownership and financing structure perspective, there are three traditional forms of ownership models: public-sector led, mining company-led or third-party investment. Given that most frontier host governments simply do not have the ability to fund these infrastructure projects on a purely public basis (including with the assistance of multilateral development banks), this report focuses on the latter two ownership arrangements. In terms of financing models, the size of such investments often rules out corporate financing as a viable option for external investors. Thus project financing is the most feasible and most adapted form of debt financing for Greenfield multi-user/multi-client mining-related infrastructure, assuming project bankability can be demonstrated to lenders. Lastly, public authorities might have to accept that multi-usage demands made to transport mining infrastructure operators might have to be initially or permanently restricted to secure, first and foremost, the delivery of an efficient mining transport system at the lowest possible cost to its anchor user/client.en-USCC BY 3.0 IGOACCESS AGREEMENTACCESS CHANNELACCESS CHARGEACCESS CHARGESACCESS REGIMEACCESS REGIMESACCESS ROADSACCESS SEEKERACCESS SEEKERSACCESSIBILITYARBITRAL AWARDSARBITRATIONASSET MANAGEMENTBAGGAGEBAGGAGE HANDLINGBANK GUARANTEESBASIC INFRASTRUCTUREBOOTBOTBUILD-OWNBUSINESS ENVIRONMENTCAPITAL COSTSCAPITAL EXPENDITURESCAPITAL MARKETSCAPITAL REQUIREMENTSCAPITAL STOCKCARCARGOCASH FLOWSCOMMERCIAL LENDERSCOMMODITY PRICECOMMODITY PRICESCOMPANYCOMPETITORSCONCESSIONCONCESSION AGREEMENTCONCESSION AGREEMENTSCONCESSION CONTRACTCONCESSIONSCONTRACTUAL ARRANGEMENTSCONTRACTUAL FRAMEWORKCORPORATIONCOST OF CAPITALCOST SAVINGSCREDIT AGENCYCROSSINGCURRENCYDEBTDEBT FINANCINGDEBT REPAYMENTDEBT SERVICEDEPOSITSDEVELOPING COUNTRIESDIESELDIRECT INVESTMENTSDISPUTE RESOLUTIONECONOMIC BENEFITSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIES OF SCALEEMERGING ECONOMIESEMPLOYMENTEQUITY FINANCINGEQUITY INVESTORSEQUITY OWNERSHIPEQUITY PARTICIPATIONEXPANSIONEXTERNAL INVESTORSFINANCIAL CAPACITYFINANCIAL COMPENSATIONFINANCIAL COVENANTSFINANCIAL RETURNSFINANCIAL STRUCTUREFINANCIAL VIABILITYFINANCING TRANSPORTATION INFRASTRUCTUREFIRMSFOREIGN INVESTMENTFORMS OF OWNERSHIPFREIGHTFREIGHT OPERATIONSFREIGHT SERVICESFUELFUTURE DEMANDGENERATIONGOVERNMENT APPROVALGOVERNMENT POLICYHOST COUNTRYHOST GOVERNMENTHOST GOVERNMENTSINDEPENDENT REGULATIONINDEPENDENT REGULATORINFRASTRUCTURE CAPACITYINFRASTRUCTURE COSTSINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE INVESTMENTSINFRASTRUCTURE OWNERSHIPINFRASTRUCTURE PROJECTINFRASTRUCTURE PROJECTSINFRASTRUCTURE REQUIREMENTSINTERNATIONAL BANKINTERNATIONAL DEVELOPMENTINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL INSTITUTIONINVESTMENT CLIMATEINVESTMENT FUNDSINVESTMENT GRADELENDERLENDERSLICENSESLOCOMOTIVEMARITIME INFRASTRUCTUREMARITIME TRAFFICMULTILATERAL DEVELOPMENT BANKSNATIONAL TRANSPORTNATURAL MONOPOLYO&MOPEN ACCESSOPERATIONAL PERFORMANCEOWNERSHIP OF ASSETSOWNERSHIP OF INFRASTRUCTUREOWNERSHIP OF SUPERSTRUCTUREOWNERSHIP STRUCTUREPASSENGER RAILPASSENGER RAIL SERVICEPASSENGER SERVICEPASSENGER SERVICESPASSENGER TRAFFICPASSENGER TRAINSPASSENGERSPAY CONTRACTSPORT ACCESSPORT ASSETSPORT AUTHORITYPORT FACILITIESPORT TERMINALSPORTSPOWERPRICE SENSITIVEPRICE SENSITIVITYPRIVATE CAPITALPRIVATE INFRASTRUCTUREPRIVATE PARTNERSHIPPRIVATE SECTORPRIVATE SECTOR INVESTMENTPRIVATE SECTOR INVOLVEMENTPRIVATE SECTOR OWNERSHIPPRIVATE SECTOR PARTICIPATIONPRIVATE SECTOR PARTYPROJECT SPONSORSPROVISIONSPUBLICPUBLIC CONSULTATIONPUBLIC LANDPUBLIC OWNERSHIPPUBLIC SECTORPUBLIC SECTOR OWNERSHIPPUBLIC SPENDINGPUBLIC TRANSPORTATIONPUBLIC-PRIVATE PARTNERSHIPSRAILRAIL ACCESSRAIL CAPACITYRAIL HAULAGERAIL INFRASTRUCTURERAIL LINERAIL NETWORKRAIL OPERATORRAIL SYSTEMRAIL TRANSPORTRAILWAYRAILWAY SYSTEMRAILWAYSRECOURSE FINANCINGREGULATORY FRAMEWORKREGULATORY SYSTEMSRENEGOTIATIONSROADSROLLING STOCKROUTESROYALTY PAYMENTSRULE OF LAWSAFETYSAVINGSSERVICE PROVIDERSOVEREIGN CREDIT RATINGSSPEEDSSPONSORSSUPPLY CHAINTARIFF STRUCTURETAXTECHNICAL ASSISTANCETERMINAL OPERATORTRACK CAPACITYTRACK CONDITIONSTRAFFICTRAFFIC VOLUMESTRAIN CONTROLTRAINSTRANSPARENCYTRANSPORTTRANSPORT CAPACITYTRANSPORT COSTSTRANSPORT FACILITIESTRANSPORT INFRASTRUCTURETRANSPORT INFRASTRUCTURESTRANSPORT MODETRANSPORT OPERATORSTRANSPORT SERVICETRANSPORT SERVICESTRANSPORT SYSTEMTRANSPORTATIONTRANSPORTATION INFRASTRUCTURE OPERATORSTRANSPORTATION SERVICESTRUCK TRANSPORTTUNNELSURBANIZATIONVEHICLEVERTICAL INTEGRATIONWorld Bank10.1596/15785