Advance Funding for Infrastructure PPPs : Cautions from Two Road Projects in Peru

Public private partnerships (PPPs) for infrastructure projects require substantial initial funding that private operators in developing countries can rarely obtain in the domestic market. In 2005, in the context of two important road projects, the...

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Main Author:	Kerf, Michel
Format:	Brief
Language:	English en_US
Published:	World Bank Group, Washington, DC 2015
Subjects:	INVESTORS SOVEREIGN DEBT FINANCING PAYMENT OBLIGATION STOCK PUBLIC FINANCING GUARANTEES NATIONAL DEBT CREDIT EXCHANGE ANNUAL PAYMENT INTERNATIONAL FINANCIAL MARKETS DOMESTIC MARKET DEVELOPING COUNTRIES REGULATOR BIDS ISSUANCE PRIVATE PARTIES PROJECTS DEFAULT MARKET ROAD PROJECTS CREDIT RATING AIRPORTS PAYMENTS GOVERNMENT SUPPORT SECURITIES PUBLIC DEBT ROADS INSTRUMENTS CREDIBILITY GOVERNMENT REGULATOR BUDGET ANNUAL PAYMENTS CONCESSION ROAD DEBT INSTRUMENTS STOCK EXCHANGE COSTS GOVERNMENT OBLIGATION TRANSPORT FINANCIAL MARKETS PAYMENT GUARANTEES AGREEMENTS CONTRACTS PRIVATE INVESTORS MONETARY FUND INVESTMENTS PAYMENT DEBT COMMUNICATION MARKETS NONPERFORMANCE INSTRUMENT NEGOTIATIONS COMMUNICATION TECHNOLOGY GOVERNMENT OBLIGATIONS LOCAL FINANCIAL MARKETS FINANCE BANK FINANCING CLAIM INFRASTRUCTURE
Online Access:	http://documents.worldbank.org/curated/en/2015/07/24441445/advance-funding-infrastructure-ppps-cautions-two-road-projects-peru http://hdl.handle.net/10986/22302

id	okr-10986-22302
recordtype	oai_dc
spelling	okr-10986-223022021-04-23T14:04:08Z Advance Funding for Infrastructure PPPs : Cautions from Two Road Projects in Peru Kerf, Michel INVESTORS SOVEREIGN DEBT FINANCING PAYMENT OBLIGATION STOCK PUBLIC FINANCING GUARANTEES NATIONAL DEBT CREDIT EXCHANGE ANNUAL PAYMENT INTERNATIONAL FINANCIAL MARKETS DOMESTIC MARKET DEVELOPING COUNTRIES REGULATOR BIDS ISSUANCE PRIVATE PARTIES PROJECTS DEFAULT MARKET ROAD PROJECTS CREDIT RATING AIRPORTS PAYMENTS GOVERNMENT SUPPORT SECURITIES PUBLIC DEBT ROADS INSTRUMENTS CREDIBILITY GOVERNMENT REGULATOR BUDGET ANNUAL PAYMENTS CONCESSION ROAD DEBT INSTRUMENTS STOCK EXCHANGE COSTS GOVERNMENT OBLIGATION TRANSPORT FINANCIAL MARKETS PAYMENT GUARANTEES AGREEMENTS CONTRACTS PRIVATE INVESTORS MONETARY FUND INVESTMENTS PAYMENT DEBT COMMUNICATION MARKETS NONPERFORMANCE INSTRUMENT NEGOTIATIONS COMMUNICATION TECHNOLOGY GOVERNMENT OBLIGATIONS LOCAL FINANCIAL MARKETS FINANCE BANK FINANCING CLAIM INFRASTRUCTURE Public private partnerships (PPPs) for infrastructure projects require substantial initial funding that private operators in developing countries can rarely obtain in the domestic market. In 2005, in the context of two important road projects, the government of Peru introduced a financial innovation with two goals: improve the access of the projects’ concessionaires to the international financial markets and book government support as an operating expense rather than debt. The innovations offered distinct advantages to the concessionaires while imposing a significant burden on the government, which has since stopped using them. Nonetheless, the new approach can still be useful in carefully limited instances to help solve the funding problem. 2015-07-28T17:31:23Z 2015-07-28T17:31:23Z 2015-03 Brief http://documents.worldbank.org/curated/en/2015/07/24441445/advance-funding-infrastructure-ppps-cautions-two-road-projects-peru http://hdl.handle.net/10986/22302 English en_US Transport and ICT connections,no. 10; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank Group, Washington, DC Publications & Research Publications & Research :: Brief Peru
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	INVESTORS SOVEREIGN DEBT FINANCING PAYMENT OBLIGATION STOCK PUBLIC FINANCING GUARANTEES NATIONAL DEBT CREDIT EXCHANGE ANNUAL PAYMENT INTERNATIONAL FINANCIAL MARKETS DOMESTIC MARKET DEVELOPING COUNTRIES REGULATOR BIDS ISSUANCE PRIVATE PARTIES PROJECTS DEFAULT MARKET ROAD PROJECTS CREDIT RATING AIRPORTS PAYMENTS GOVERNMENT SUPPORT SECURITIES PUBLIC DEBT ROADS INSTRUMENTS CREDIBILITY GOVERNMENT REGULATOR BUDGET ANNUAL PAYMENTS CONCESSION ROAD DEBT INSTRUMENTS STOCK EXCHANGE COSTS GOVERNMENT OBLIGATION TRANSPORT FINANCIAL MARKETS PAYMENT GUARANTEES AGREEMENTS CONTRACTS PRIVATE INVESTORS MONETARY FUND INVESTMENTS PAYMENT DEBT COMMUNICATION MARKETS NONPERFORMANCE INSTRUMENT NEGOTIATIONS COMMUNICATION TECHNOLOGY GOVERNMENT OBLIGATIONS LOCAL FINANCIAL MARKETS FINANCE BANK FINANCING CLAIM INFRASTRUCTURE
spellingShingle	INVESTORS SOVEREIGN DEBT FINANCING PAYMENT OBLIGATION STOCK PUBLIC FINANCING GUARANTEES NATIONAL DEBT CREDIT EXCHANGE ANNUAL PAYMENT INTERNATIONAL FINANCIAL MARKETS DOMESTIC MARKET DEVELOPING COUNTRIES REGULATOR BIDS ISSUANCE PRIVATE PARTIES PROJECTS DEFAULT MARKET ROAD PROJECTS CREDIT RATING AIRPORTS PAYMENTS GOVERNMENT SUPPORT SECURITIES PUBLIC DEBT ROADS INSTRUMENTS CREDIBILITY GOVERNMENT REGULATOR BUDGET ANNUAL PAYMENTS CONCESSION ROAD DEBT INSTRUMENTS STOCK EXCHANGE COSTS GOVERNMENT OBLIGATION TRANSPORT FINANCIAL MARKETS PAYMENT GUARANTEES AGREEMENTS CONTRACTS PRIVATE INVESTORS MONETARY FUND INVESTMENTS PAYMENT DEBT COMMUNICATION MARKETS NONPERFORMANCE INSTRUMENT NEGOTIATIONS COMMUNICATION TECHNOLOGY GOVERNMENT OBLIGATIONS LOCAL FINANCIAL MARKETS FINANCE BANK FINANCING CLAIM INFRASTRUCTURE Kerf, Michel Advance Funding for Infrastructure PPPs : Cautions from Two Road Projects in Peru
geographic_facet	Peru
relation	Transport and ICT connections,no. 10;
description	Public private partnerships (PPPs) for infrastructure projects require substantial initial funding that private operators in developing countries can rarely obtain in the domestic market. In 2005, in the context of two important road projects, the government of Peru introduced a financial innovation with two goals: improve the access of the projects’ concessionaires to the international financial markets and book government support as an operating expense rather than debt. The innovations offered distinct advantages to the concessionaires while imposing a significant burden on the government, which has since stopped using them. Nonetheless, the new approach can still be useful in carefully limited instances to help solve the funding problem.
format	Brief
author	Kerf, Michel
author_facet	Kerf, Michel
author_sort	Kerf, Michel
title	Advance Funding for Infrastructure PPPs : Cautions from Two Road Projects in Peru
title_short	Advance Funding for Infrastructure PPPs : Cautions from Two Road Projects in Peru
title_full	Advance Funding for Infrastructure PPPs : Cautions from Two Road Projects in Peru
title_fullStr	Advance Funding for Infrastructure PPPs : Cautions from Two Road Projects in Peru
title_full_unstemmed	Advance Funding for Infrastructure PPPs : Cautions from Two Road Projects in Peru
title_sort	advance funding for infrastructure ppps : cautions from two road projects in peru
publisher	World Bank Group, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/07/24441445/advance-funding-infrastructure-ppps-cautions-two-road-projects-peru http://hdl.handle.net/10986/22302
_version_	1764450757744001024

Advance Funding for Infrastructure PPPs : Cautions from Two Road Projects in Peru

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