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.

• Main Financing Mechanisms for Infrastructure Projects
• Investors in Infrastructure in Developing Countries
• Sources of Financing
• Project Finance – Key Concepts
• Key Issues in Developing Project Financed Transactions
• Risk Allocation and Risk Mitigation in Project Financed Transactions
• Risk Mitigation Mechanisms (including guarantees and political risk insurance)
• Government Support in Financing PPPs
• Government Risk Management