Assessment of the Impact of the Crisis on New PPI Projects : Update Three
Despite the financial and economic crisis, new private activity in infrastructure continues to take place in developing countries. New projects are still being tendered and brought to financial closure, but at a slower pace. Between July 2008 and M...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2009/06/11419249/assessment-impact-crisis-new-ppi-projects-update-three http://hdl.handle.net/10986/10982 |
| Summary: | Despite the financial and economic
crisis, new private activity in infrastructure continues to
take place in developing countries. New projects are still
being tendered and brought to financial closure, but at a
slower pace. Between July 2008 and March 2009, the rate of
project closure fell 15 percent by investment compared to a
similar period in the previous year. Investment commitments
to private infrastructure projects showed some signs of
recovery in the first months of 2009, but this recovery was
driven by a few large priority projects in select countries.
These projects were able to raise financing thanks to the
backing of highly-rated sponsors and their priority status
in their respective countries. The financial crisis has made
financing (both debt and equity) more difficult to secure,
and has hampered the ability of governments to maintain
their financial commitments to private infrastructure
projects. These projects are facing higher cost of financing
a problem compounded by the lower demand for infrastructure
services that is beginning to impact some sectors. As a
result some planned private infrastructure projects are
being delayed, restructured, and, to a lesser extent,
cancelled. Transport is the worst affected sector so far,
while the most affected group of countries are middle-income
countries, especially in the Eastern Europe and Central Asia region. |
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