Financing Sources

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Local Governments Climate Finance Instruments - Global Experiences and Prospects in Developing Countries

This joint publication of the World Bank and the UN Capital Development Fund aims to help cities and local governments better understand the various climate finance instruments and sources available…

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Structure - Primer on Project Development Funds

A PDF’s structure is a key determinant of its effectiveness and ability to ensure the quality and efficiency of project preparation. However, PDFs function within and alongside the broader PPP…

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Executive Summary - Primer on Project Development Funds

Executive SummaryProject development funds (PDFs) are dedicated vehicles that governments establish to systematically support the preparation of public-private partnerships (PPPs). The lack of…

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Introduction - Primer on Project Development Funds

Introduction Governments are constrained in their ability to invest sufficiently in infrastructure development. Governments have long been unable to meet infrastructure investment needs due to…

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Motivations and Experience - Primer on Project Development Funds

Constrained financial resources are a key impediment to the preparation of bankable projects and the overall success of PPP programs.1 The allocation of additional, dedicated funding to PPP project…

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Funding - Primer on Project Development Funds

PDFs are often thought of primarily as a funding source. Although it is clear that PDFs are much more than this, decisions related to how PDFs are funded, and the quantum of funds they are able to…

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Lessons for Practitioners - Primer on Project Development Funds

There is no one “right” PDF design, only a PDF design which best supports project preparation in a particular jurisdiction. PDFs take a wide range of forms, whether an independent legal entity with…

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Operational Considerations - Primer on Project Development Funds

Once critical design decisions are taken around how a PDF is structured, how it is funded, and the nature of projects it will support, there remain a wide range of PDF operational issues that need to…

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List of Government PDFs (Annex) - Primer on Project Development Funds

CountryRelevant FundTypeBrazilSupport Fund for Structuring and Development of Concession and PPP Projects (FEP) Project Development Division (AEP), including the Project Structuring Fund and the…

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Project Selection - Primer on Project Development Funds

A key motivation of PDFs, as noted in Chapter 2, is to improve the quality and efficiency of PPP project preparation through the provision of PPP advisory services. Decisions related to the nature of…

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Revenues

Revenues are a critical component of any financial model, providing the income streams necessary to ensure the viability and sustainability of a project. In infrastructure projects, revenues can come…

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How blended finance can reorient cautious private investors to infrastructure

Blended finance is a way to improve risk-adjusted returns and mobilize private capital to close infrastructure financing gaps. Sustainable, optimal, and innovative strategies can increase private…

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Blended Finance

Blended finance is a strategic approach that combines public and private funding to mobilize private capital flows towards emerging and frontier markets. It aims to attract commercial capital to…

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The Role of Public Finance in PPPs

The exclusive use of private finance is not a defining characteristic of a PPP—governments can also partially finance PPP projects. Reducing the amount of capital investment needed from private…

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Considerations for Government

When a PPP involves private finance, the investor typically has primary responsibility for developing the finance structure of the project. Nonetheless, government may need to influence its design.At…

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Insufficient Funds

Infrastructure investment is typically under-funded—that is, most countries are not investing enough to meet strategic objectives, such as universal access or poverty eradication. This suggests that…

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How PPPs Are Financed

SubsectionsFinance Structures for PPPConsiderations for GovernmentThe Role of Public Finance in PPPsThird Party Risk Mitigation and Credit EnhancementKey ResourcesHow PPPs Are FinancedFarquharson,…

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Further Readings on Financing and Risk Mitigation

Further Reading and ResourcesProject Development Funds, a primer published by The World Bank, 'Project Development Funds (PDFs) - Supporting Project Preparation to Structure Successful Public-…

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Key Issues in Developing Project Financed Transactions

Certainty of Revenue StreamAs noted above, the project is unlikely to generate revenue until the operations period and so it is going to be key to lenders and other investors that the revenue stream…

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Project Finance – Key Concepts

Typical Project Finance StructureThe typical project financing structure (simplified for these purposes) for a build, operate and transfer (BOT) project is shown below. The key elements of the…