Real-Time Data as an Early Warning Signal: Preventing problems in PPPs, achieving better results
Publication Date:
Jan 01, 2016
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This article is extracted from Handshake Issue #17: Data
The risks inherent in public-private partnerships (PPPs) are real. These long-term projects require substantial investment: typically, PPP project funding structures constitute 70 to 80 percent debt, with the remaining coming from equity sources. Because of the nature of these projects, their loan repayment profile demands a longer tenor. In a practical sense, once lenders start disbursing funds to a PPP, the loans could remain on their balance sheet for around 20 years. This is a typical scenario.
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