Funding options has been saved
Alternative financing for infrastructure development
The landscape for infrastructure funding and finance has been dramatically altered and could remain so for at least the near term.
Three trends are emerging:
- Governments are attempting to use increased infrastructure spending as a tactic for economic stimulus
- Tightened credit markets are posing an obstacle to raising debt finance for infrastructure delivery models – public or private – that depend on high levels of up-front capital repaid over the long term through user fees or general taxation
- Government balance sheets are constrained, making it more difficult to fund infrastructure projects.
This paper discusses these trends and the impact of each on infrastructure funding/finance, particularly with respect to the prospects for public-private partnerships (PPPs).