Financing and Risk Mitigation

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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

Financing Mechanisms
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
Government Support in PPP Projects
PPPs inherently require public sector involvement. The type and extent… more

Government Risk Management
Where infrastructure projects have large public externalities, some level of direct financial support from the… more