New Private Infrastructure Projects in Developing Countries Have Started Being Affected by the Financial Crisis
New private activity continued to take place in developing countries in Aug-Nov 2008 with projects being developed, tendered, and taken to financial close, but at a rate that was about 40 percent lower than in the same period in 2007. The slowdown...
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/12/11900153/new-private-infrastructure-projects-developing-countries-started-being-affected-financial-crisis http://hdl.handle.net/10986/11007 |
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okr-10986-110072021-04-23T14:02:53Z New Private Infrastructure Projects in Developing Countries Have Started Being Affected by the Financial Crisis Izaguirre, Ada Karina ACCESS TO CAPITAL ACCOUNTING BANK BANK LENDING BOND BOND MARKETS CAPITAL MARKETS CASH FLOWS CREDIT CREDIT AGENCIES DEBT DEBT RESTRUCTURING DEVALUATIONS DEVELOPING COUNTRIES DIRECT FINANCING ECONOMIC GROWTH ECONOMICS FINANCE FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL MARKETS FINANCIAL VIABILITY FINANCIERS FINANCING FINANCING COST FINANCING COSTS FOREIGN CURRENCY FUNDING INFORMATION INTEREST INVESTMENT INVESTMENTS INVESTOR INVESTOR INTEREST INVESTORS LOCAL BANKS LOCAL CURRENCY MARKET NEGOTIATIONS PARTICIPATION PRIVATE INFRASTRUCTURE PROJECT PROJECT FINANCING PROJECTS PUBLIC BANKS PUBLIC SECTOR BANKS RECOVERY OF INVESTMENT REVENUES RISK RISK PERCEPTION SHARE URBAN DEVELOPMENT New private activity continued to take place in developing countries in Aug-Nov 2008 with projects being developed, tendered, and taken to financial close, but at a rate that was about 40 percent lower than in the same period in 2007. The slowdown reflects an initial impact of the financial crisis which has made financing more onerous and difficult to secure as access to capital markets and bank lending has been reduced or halted and risk perception increased. Projects are facing higher cost of financing, but the major impact to date is project being delayed or cancelled. It is, however, too early to assess the full impact of the crisis on new Public-Private Investment (PPI) projects. Many investors and financiers are in a wait-and-see mindset and are likely to be so for the next 3 to 6 months or until the breadth and depth of the crisis impact become clearer. When financial markets bottom out or start to recover, project financing levels are likely to remain impacted over a significant period of time if the trends shown in previous financial crises are repeated. As the "flight to quality" sets in for banks and other financiers, the likely impact will be more stringent financial conditions, not only via higher cost of financing but also with lower debt/equity ratios and more conservative structures. The expected economic downturn in developed and developing countries is also likely to reduce demand levels and have a significant impact on project revenues, and consequently on projects' financial viability. 2012-08-13T13:51:45Z 2012-08-13T13:51:45Z 2008-12 http://documents.worldbank.org/curated/en/2008/12/11900153/new-private-infrastructure-projects-developing-countries-started-being-affected-financial-crisis http://hdl.handle.net/10986/11007 English PPI Data Update; Note No. 20 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CAPITAL ACCOUNTING BANK BANK LENDING BOND BOND MARKETS CAPITAL MARKETS CASH FLOWS CREDIT CREDIT AGENCIES DEBT DEBT RESTRUCTURING DEVALUATIONS DEVELOPING COUNTRIES DIRECT FINANCING ECONOMIC GROWTH ECONOMICS FINANCE FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL MARKETS FINANCIAL VIABILITY FINANCIERS FINANCING FINANCING COST FINANCING COSTS FOREIGN CURRENCY FUNDING INFORMATION INTEREST INVESTMENT INVESTMENTS INVESTOR INVESTOR INTEREST INVESTORS LOCAL BANKS LOCAL CURRENCY MARKET NEGOTIATIONS PARTICIPATION PRIVATE INFRASTRUCTURE PROJECT PROJECT FINANCING PROJECTS PUBLIC BANKS PUBLIC SECTOR BANKS RECOVERY OF INVESTMENT REVENUES RISK RISK PERCEPTION SHARE URBAN DEVELOPMENT |
| spellingShingle |
ACCESS TO CAPITAL ACCOUNTING BANK BANK LENDING BOND BOND MARKETS CAPITAL MARKETS CASH FLOWS CREDIT CREDIT AGENCIES DEBT DEBT RESTRUCTURING DEVALUATIONS DEVELOPING COUNTRIES DIRECT FINANCING ECONOMIC GROWTH ECONOMICS FINANCE FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL MARKETS FINANCIAL VIABILITY FINANCIERS FINANCING FINANCING COST FINANCING COSTS FOREIGN CURRENCY FUNDING INFORMATION INTEREST INVESTMENT INVESTMENTS INVESTOR INVESTOR INTEREST INVESTORS LOCAL BANKS LOCAL CURRENCY MARKET NEGOTIATIONS PARTICIPATION PRIVATE INFRASTRUCTURE PROJECT PROJECT FINANCING PROJECTS PUBLIC BANKS PUBLIC SECTOR BANKS RECOVERY OF INVESTMENT REVENUES RISK RISK PERCEPTION SHARE URBAN DEVELOPMENT Izaguirre, Ada Karina New Private Infrastructure Projects in Developing Countries Have Started Being Affected by the Financial Crisis |
| geographic_facet |
The World Region |
| relation |
PPI Data Update; Note No. 20 |
| description |
New private activity continued to take
place in developing countries in Aug-Nov 2008 with projects
being developed, tendered, and taken to financial close, but
at a rate that was about 40 percent lower than in the same
period in 2007. The slowdown reflects an initial impact of
the financial crisis which has made financing more onerous
and difficult to secure as access to capital markets and
bank lending has been reduced or halted and risk perception
increased. Projects are facing higher cost of financing, but
the major impact to date is project being delayed or
cancelled. It is, however, too early to assess the full
impact of the crisis on new Public-Private Investment (PPI)
projects. Many investors and financiers are in a
wait-and-see mindset and are likely to be so for the next 3
to 6 months or until the breadth and depth of the crisis
impact become clearer. When financial markets bottom out or
start to recover, project financing levels are likely to
remain impacted over a significant period of time if the
trends shown in previous financial crises are repeated. As
the "flight to quality" sets in for banks and
other financiers, the likely impact will be more stringent
financial conditions, not only via higher cost of financing
but also with lower debt/equity ratios and more conservative
structures. The expected economic downturn in developed and
developing countries is also likely to reduce demand levels
and have a significant impact on project revenues, and
consequently on projects' financial viability. |
| format |
Publications & Research :: Brief |
| author |
Izaguirre, Ada Karina |
| author_facet |
Izaguirre, Ada Karina |
| author_sort |
Izaguirre, Ada Karina |
| title |
New Private Infrastructure Projects in Developing Countries Have Started Being Affected by the Financial Crisis |
| title_short |
New Private Infrastructure Projects in Developing Countries Have Started Being Affected by the Financial Crisis |
| title_full |
New Private Infrastructure Projects in Developing Countries Have Started Being Affected by the Financial Crisis |
| title_fullStr |
New Private Infrastructure Projects in Developing Countries Have Started Being Affected by the Financial Crisis |
| title_full_unstemmed |
New Private Infrastructure Projects in Developing Countries Have Started Being Affected by the Financial Crisis |
| title_sort |
new private infrastructure projects in developing countries have started being affected by the financial crisis |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/12/11900153/new-private-infrastructure-projects-developing-countries-started-being-affected-financial-crisis http://hdl.handle.net/10986/11007 |
| _version_ |
1764415178348167168 |