Private Finance for Infrastructure Investments: Analysis and Implications for New Multilateral Development Banks
This paper examines investments—in the form of equity or debt—in direct investments to infrastructure. It first introduces the pros and cons of project finance instrument. After that, it analyses infrastructure projects as a nexus of contracts and pool of risks. It then highlights the most important variables that investors look at when deciding to invest money in infrastructure projects. Followed by that, it draws conclusions and identifies some possible implications for the design of the business model of a newly created multilateral bank for Brazil, Russia, India, China, and South Africa (BRICS) countries.
One of the GGKP founding partners, the Global Green Gorwth Institute (GGGI), has released a series of working papers titled "Infrastructure Finance in the Developing World". The series is a joint research effort by GGGI and the Intergovernmental Group of Twenty Four (G-24) that explores the challenges and opportunities for scaling up infrastructure finance in emerging markets and developing countries. Each paper addresses a unique piece of the infrastructure finance puzzle and provides critical analysis that will give impetus to international discourse and play a catalytic role in the creation and success of new development finance institutions.
The papers have been authored by top experts in their respective fields, and the process has been carefully guided by the leadership of both organizations. This work has important implications in the post-2015 environment, given the essential role infrastructure must play in achieving sustainable development. To this end, GGGI and the G-24 will further develop and operationalize the contents of these papers.
Papers in the series currently include:
- Green Infrastructure: Definition and Needs
- Private Finance for Infrastructure Investments: Analysis and Implications for New Multilateral Development Banks
- Infrastructure Pipeline and Need for Robust Project Preparation
- Public Finance Underpinnings for Infrastructure Financing in Developing Countries
- Involving the Private Sector and Public–Private Partnerships in Financing Investments: Public Opportunities and Challenges
- National Development Banks and Infrastructure Provision: A Comparative Study of Brazil, China, and South Africa
- Challenges and Opportunities for Multilateral Development Banks in 21st Century Infrastructure Finance
- Multilateral Lending Instruments for Infrastructure Financing