Funding and Financing Infrastructure : The Joint Use of Public and Private Finance
The paper addresses the issue of the feasible level of private finance in a contracting model of infrastructure finding and financing. It characterizes the structure of financial contracts, deriving the conditions under which both public and privat...
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/176101530040441739/Funding-and-financing-infrastructure-the-joint-use-of-public-and-private-finance http://hdl.handle.net/10986/29949 |
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okr-10986-299492021-09-16T22:10:53Z Funding and Financing Infrastructure : The Joint Use of Public and Private Finance Fay, Marianne Martimort, David Straub, Stephane INFRASTRUCTURE FINANCE PUBLIC FINANCE PUBLIC-PRIVATE PARTNERSHIPS SUBSIDIES SOCIAL INCLUSION ACCESS TO FINANCE PPI DATABASE The paper addresses the issue of the feasible level of private finance in a contracting model of infrastructure finding and financing. It characterizes the structure of financial contracts, deriving the conditions under which both public and private finance coexist. A key feature is that access to outside finance and the regulatory decision on pricing and the amount of public subsidy, hence the extent of price recovery, are jointly determined. Mobilizing private finance requires a combination of price for the service and subsidy to the service provider that is large enough, exacerbating the fundamental tensions between financial viability through cost recovery and social inclusion. The paper then shows that the feasibility trade-off responds in non-trivial ways to changes in the economic and institutional environment likely to occur along the development path. While improvements along some of these dimensions, notably in the efficiency of bankruptcy procedures, appear to ease access to private finance, others, such as the cost of public funds, actually makes public finance more efficient. Using project data from the PPI database including information on the financial structure, the authors uncover an inverse U-shaped pattern in the share of private finance, peaking for countries in the upper-middle income range, which echoes their theoretical findings. 2018-06-28T15:54:33Z 2018-06-28T15:54:33Z 2018-06 Working Paper http://documents.worldbank.org/curated/en/176101530040441739/Funding-and-financing-infrastructure-the-joint-use-of-public-and-private-finance http://hdl.handle.net/10986/29949 English Policy Research Working Paper;No. 8496 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
INFRASTRUCTURE FINANCE PUBLIC FINANCE PUBLIC-PRIVATE PARTNERSHIPS SUBSIDIES SOCIAL INCLUSION ACCESS TO FINANCE PPI DATABASE |
| spellingShingle |
INFRASTRUCTURE FINANCE PUBLIC FINANCE PUBLIC-PRIVATE PARTNERSHIPS SUBSIDIES SOCIAL INCLUSION ACCESS TO FINANCE PPI DATABASE Fay, Marianne Martimort, David Straub, Stephane Funding and Financing Infrastructure : The Joint Use of Public and Private Finance |
| relation |
Policy Research Working Paper;No. 8496 |
| description |
The paper addresses the issue of the
feasible level of private finance in a contracting model of
infrastructure finding and financing. It characterizes the
structure of financial contracts, deriving the conditions
under which both public and private finance coexist. A key
feature is that access to outside finance and the regulatory
decision on pricing and the amount of public subsidy, hence
the extent of price recovery, are jointly determined.
Mobilizing private finance requires a combination of price
for the service and subsidy to the service provider that is
large enough, exacerbating the fundamental tensions between
financial viability through cost recovery and social
inclusion. The paper then shows that the feasibility
trade-off responds in non-trivial ways to changes in the
economic and institutional environment likely to occur along
the development path. While improvements along some of these
dimensions, notably in the efficiency of bankruptcy
procedures, appear to ease access to private finance,
others, such as the cost of public funds, actually makes
public finance more efficient. Using project data from the
PPI database including information on the financial
structure, the authors uncover an inverse U-shaped pattern
in the share of private finance, peaking for countries in
the upper-middle income range, which echoes their
theoretical findings. |
| format |
Working Paper |
| author |
Fay, Marianne Martimort, David Straub, Stephane |
| author_facet |
Fay, Marianne Martimort, David Straub, Stephane |
| author_sort |
Fay, Marianne |
| title |
Funding and Financing Infrastructure : The Joint Use of Public and Private Finance |
| title_short |
Funding and Financing Infrastructure : The Joint Use of Public and Private Finance |
| title_full |
Funding and Financing Infrastructure : The Joint Use of Public and Private Finance |
| title_fullStr |
Funding and Financing Infrastructure : The Joint Use of Public and Private Finance |
| title_full_unstemmed |
Funding and Financing Infrastructure : The Joint Use of Public and Private Finance |
| title_sort |
funding and financing infrastructure : the joint use of public and private finance |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/176101530040441739/Funding-and-financing-infrastructure-the-joint-use-of-public-and-private-finance http://hdl.handle.net/10986/29949 |
| _version_ |
1764470880269762560 |