H1 2017 Private Participation in Infrastructure (PPI) Update
Private Participation in Infrastructure (PPI) investment in H1 2017 increased by 24 percent, from US$29.5 billion in H1 2016, to US$36.7 billion. H1 2017 PPI investment levels are still lower than historical levels- 15 percent lower than half-year averages over the last five years and the second lowest level of investment in the past 10 years. The average project size increased marginally by three percent from US$269 million in full-year 2016 to US$278 million in H1 2017, while the number of projects dropped slightly from 138 to 132. H1 2017 saw seven projects with investment commitments higher than US$1 billion. Interestingly, if we exclude such mega projects we see a marked increase in the average project size from US$156 million in full-year 2016 to US$171 million in H1 2017.
H1 2017 Highlights
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Investment commitments involving private participation in low and middle-income countries for energy, transport and water infrastructure totaled US$36.7 billion across 132 projects in H1 2017.
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Although H1 2017 investment could be showing signs of recovery with a 24 percent in- crease over H1 2016 level, it is still the second-lowest level of half-year investment in the past 10 years, and 15 percent lower than the half-year averages of the past five years.
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Indonesia was the destination for highest investment by value (US$7.8 billion), while Pakistan and Jordan were new entrants to the top five. One-third of the H1 2017 global investment was accounted for by only five projects in these three countries.
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Sixty-eight out of 82 electricity generation projects were in renewables, accounting for 50 percent of total electricity generation investment and 47 percent of total capacity (5.6 giga- watts/11.9 gigawatts).
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Of the total investment1, 75 percent was debt-financed, with 38 percent of debt raised from commercial debt providers. 79 percent of the debt raised was from international sources.
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Private sources financed 48 percent of investments . Public sources financed 23 percent, and DFI2 sources 29 percent.
