Addressing Constraints to Private Financing of Urban (Climate) Infrastructure in Developing Countries

Urban infrastructure investment needs in the developing world are immense, particularly when the additional costs associated with lower carbon, more climate-resilient options are considered. These cannot possibly be financed from fiscal sources and ODA flows alone; private financing will need to be...

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Main Authors:	White, Roland, Wahba, Sameh
Format:	Journal Article
Published:	Taylor and Francis 2019
Subjects:	MUNICIPAL FINANCE MUNICIPAL BORROWING PRIVATE INVESTMENT CLIMATE CHANGE INFRASTRUCTURE FINANCE PUBLIC-PRIVATE PARTNERSHIP LAND VALUE CAPTURE URBAN INFRASTRUCTURE CLIMATE FINANCE
Online Access:	http://hdl.handle.net/10986/32769

id	okr-10986-32769
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spelling	okr-10986-327692021-05-25T10:54:37Z Addressing Constraints to Private Financing of Urban (Climate) Infrastructure in Developing Countries White, Roland Wahba, Sameh MUNICIPAL FINANCE MUNICIPAL BORROWING PRIVATE INVESTMENT CLIMATE CHANGE INFRASTRUCTURE FINANCE PUBLIC-PRIVATE PARTNERSHIP LAND VALUE CAPTURE URBAN INFRASTRUCTURE CLIMATE FINANCE Urban infrastructure investment needs in the developing world are immense, particularly when the additional costs associated with lower carbon, more climate-resilient options are considered. These cannot possibly be financed from fiscal sources and ODA flows alone; private financing will need to be accessed. Focusing on the ability of city governments and subnational urban utilities to mobilize private finance, this paper makes two core arguments. First, private investment in municipal infrastructure requires robust institutional, fiscal and regulatory systems that are often absent in developing countries. Establishing such systems often requires policy and institutional reform, much of which lies beyond the competence and control of city governments themselves. Second, while the marginal investment needs related to climate mitigation and adaptation complicate and aggravate the picture, they do not alter the fundamental requirements of private investors. Put simply, municipalities and utilities will need to satisfy the requirements of regular private finance before they can attract green private finance. This paper looks across the main avenues for city governments to mobilize private finance – municipal borrowing, public–private partnerships, and land value capture instruments – and identifies four broad factors that determine the potential size and scope of city leveraging activity. It then offers a new framework to understand where the most pressing constraints to private investment readiness lie and proposes priority measures that local and national governments, together with development partners and other stakeholders, can take to address them. 2019-12-04T18:04:18Z 2019-12-04T18:04:18Z 2019-01-29 Journal Article International Journal of Urban Sustainable Development 1946-3138 http://hdl.handle.net/10986/32769 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Taylor and Francis Publications & Research Publications & Research :: Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	MUNICIPAL FINANCE MUNICIPAL BORROWING PRIVATE INVESTMENT CLIMATE CHANGE INFRASTRUCTURE FINANCE PUBLIC-PRIVATE PARTNERSHIP LAND VALUE CAPTURE URBAN INFRASTRUCTURE CLIMATE FINANCE
spellingShingle	MUNICIPAL FINANCE MUNICIPAL BORROWING PRIVATE INVESTMENT CLIMATE CHANGE INFRASTRUCTURE FINANCE PUBLIC-PRIVATE PARTNERSHIP LAND VALUE CAPTURE URBAN INFRASTRUCTURE CLIMATE FINANCE White, Roland Wahba, Sameh Addressing Constraints to Private Financing of Urban (Climate) Infrastructure in Developing Countries
description	Urban infrastructure investment needs in the developing world are immense, particularly when the additional costs associated with lower carbon, more climate-resilient options are considered. These cannot possibly be financed from fiscal sources and ODA flows alone; private financing will need to be accessed. Focusing on the ability of city governments and subnational urban utilities to mobilize private finance, this paper makes two core arguments. First, private investment in municipal infrastructure requires robust institutional, fiscal and regulatory systems that are often absent in developing countries. Establishing such systems often requires policy and institutional reform, much of which lies beyond the competence and control of city governments themselves. Second, while the marginal investment needs related to climate mitigation and adaptation complicate and aggravate the picture, they do not alter the fundamental requirements of private investors. Put simply, municipalities and utilities will need to satisfy the requirements of regular private finance before they can attract green private finance. This paper looks across the main avenues for city governments to mobilize private finance – municipal borrowing, public–private partnerships, and land value capture instruments – and identifies four broad factors that determine the potential size and scope of city leveraging activity. It then offers a new framework to understand where the most pressing constraints to private investment readiness lie and proposes priority measures that local and national governments, together with development partners and other stakeholders, can take to address them.
format	Journal Article
author	White, Roland Wahba, Sameh
author_facet	White, Roland Wahba, Sameh
author_sort	White, Roland
title	Addressing Constraints to Private Financing of Urban (Climate) Infrastructure in Developing Countries
title_short	Addressing Constraints to Private Financing of Urban (Climate) Infrastructure in Developing Countries
title_full	Addressing Constraints to Private Financing of Urban (Climate) Infrastructure in Developing Countries
title_fullStr	Addressing Constraints to Private Financing of Urban (Climate) Infrastructure in Developing Countries
title_full_unstemmed	Addressing Constraints to Private Financing of Urban (Climate) Infrastructure in Developing Countries
title_sort	addressing constraints to private financing of urban (climate) infrastructure in developing countries
publisher	Taylor and Francis
publishDate	2019
url	http://hdl.handle.net/10986/32769
_version_	1764477257605185536

Addressing Constraints to Private Financing of Urban (Climate) Infrastructure in Developing Countries

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