Funding and financing infrastructure: The joint-use of public and private finance

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Financing agri-food business in the Mediterranean area through crowdfunding: Do environmental issues matter?

“…The European Union considers innovation as a driver of productivity and competitiveness and significant efforts are being made to improve access to finance for them, as it is crucial to their survival. As Fay et al (2021) recently pointed out, even if attracting private financing is high on the agenda of policymakers concerned with closing the infrastructure gap in developing countries, private finance represents a minor share of overall infrastructure financing and the poorest countries struggle to attract any private investors. To foster the creation of enabling ecosystem and to reduce fragmentation in the digital single market, the European Commission implements a range of measures starting from early 2103.…”

Behavioral Insights in Infrastructure Sectors: A Survey

“…However, more replications and large-scale statistically well-powered experiments are needed to establish some of the behavioral findings from across different cultures and social groups to make a realistic assessment of the impact of different interventions and the magnitude of the For infrastructure, there is some evidence of PPPs leading to gains in labor productivity having entailed significant labor downsizing. Porchet & Saussier (2018) PPPs in water had an increase or neutral impact on prices, private sector participation improves coverage, poor consumers welfare increased and there is no impact on technical efficiency Time Horizon Fay et al (2021) Attracting private funding for infrastructure in developing countries has proven to be challenging, especially given the low institutional and political stability of recipients that makes contract implementation and renegotiation challenging, Choice among projects Nagpal et al (2018) While in developed countries fiscal space for general taxes and tariffs and transfers for the use of the infrastructures are able to cover a big share of the costs, in developing countries the former is extremely low in comparison to the cost of providing the service.…”

“…This choice also affects the costs, potential revenues from user fees and ultimately the financial viability of the project. This in turn affects the feasibility of a private interested partner (as shown in Fay et al (2021)). On the other hand, infrastructure investments are long term commitments while those holding political office may be working on much shorter timelines.…”

“…For instance, the estimated cost to meet the SDG for drinking water and sanitation services is $1.7 trillion, three times more than has been invested in the sector to date (Nagpal et al, 2018). Moreover, approximately one billion people still lack access to electricity globally (Fay et al, 2021); 2.2 billion lack access to safe drinking water and 4.2 billion do not have safely managed sanitation services (WHO & UNICEF, 2019).…”

Determinants of Performance of Water Projects in Urban Center in Kenya: A Case of Mji Wa Kale Sub-Location in Mombasa County

“…According to a recent econometric analysis of how regulatory costs affect the availability and desirability of using private finance, the "tension between financial viability and inclusion, in the very places where the share of poor consumers to whom one would wish to extend the service is higher, is the first fundamental challenge of infrastructure finance in developing countries" (Fay, Martimott, & Straub 2018).…”