Financing and Risk Mitigation

A key motivation for governments considering public-private partnerships (PPPs) is the possibility of bringing in new sources of financing for funding public infrastructure and service needs.

This section provides an introduction to financing projects. It is not intended to be an exhaustive guide. More details can be found in the materials in the Further Reading and Resources section. Financing of projects follows market trends and volatility and some of these trends may not be reflected in this section.

Subsections

Main Financing Mechanisms for Infrastructure… A number of financing mechanisms are available for infrastructure projects, and for public-private partnership (PPP)… more
Investors in Infrastructure in Developing… The section looks at the typical main investors into infrastructure projects.
Sources of Financing and Intercreditor Agreement This section looks at the main sources of financing and the agreement in the financing puzzle that governs the… more
Project Finance – Key Concepts One of the primary advantages of project financing is that it provides for off-balance-sheet financing of the project,… more
Key Issues in Developing Project Financed… This section looks at some of the key issues that arise in project financed deals. Future forecasts of demand, cost and… more
Risk Allocation, Bankability and Mitigation in… A number of key risks need to be allocated and managed to ensure the successful financing of the project and these… more
Risk Mitigation Mechanisms (including guarantees… This section looks at the different mechanisms products that are available in the market for project sponsors, lenders… more
Government Support in Financing PPPs The government may decide to provide direct support for the project for example through subsidies/grants, equity… more
Government Risk Management Where infrastructure projects have large public externalities, some level of direct financial support from the… more