The private sector exits only a fraction of private infrastructure projects before the contract ends. Yet such cancellations can have a sustained impact on a country's program of public-private partnerships, reducing the private sector's confidence in the government's commitment as well as the government's confidence in the robustness and "value for money" of these arrangements. Econometric analysis shows that macroeconomic shocks nearly double the cancellation rate. As today's global financial crisis greatly increases the cost, and reduces the availability, of project financing, the number of cancellations could grow. That would have implications for the role public-private partnerships can play in meeting the infrastructure needs of developing countries.
Details
-
Author
Harris,Clive G., Pratap, Kumar V.
-
Document Date
2009/03/01
-
Document Type
Brief
-
Report Number
47884
-
Volume No
1
-
Total Volume(s)
1
-
Country
-
Region
-
Disclosure Date
2010/07/01
-
Disclosure Status
Disclosed
-
Doc Name
What drives private sector exit from infrastructure? Economic crises and other factors in the cancellation of private infrastructure projects in developing countries
-
Keywords
Public Private Infrastructure Advisory Facility;private sector in water supply;water and sewerage sector;demand for service;share of investment;public-private partnership;public-private infrastructure;private sector note;form of corruption;water and electricity;control of corruption;bulk water cost;project cancellation;global financial crisis;toll road program;exchange rate depreciation;macroeconomic shock;financial closure;investment commitment;private company;econometric analysis;political sensitivity;water sector;project grant;treatment plant;project financing;joint product;international arbitration;national sovereignty;contract termination;public power;power utility;adverse outcomes;state sector;government grant;private gain;Power Generation;property right;power utilities;collected information;knowledge dissemination;foreign multinational;non-governmental organization;research institutions;concession design;private interest;marginal effect;model result;Exchange Rates;investment sector;infrastructure policy;infrastructure needs;foreign currency;electricity distribution;concession period;economic crisis;government's commitment;Energy Projects;Political Economy;infrastructure sector;low rate;contract period;foreign financing;private involvement;electricity utilities;
- See More
Downloads
COMPLETE REPORT
Official version of document (may contain signatures, etc)
- Official PDF
- TXT*
- Total Downloads** :
- Download Stats
-
*The text version is uncorrected OCR text and is included solely to benefit users with slow connectivity.
Citation
Harris,Clive G.;Pratap, Kumar V.;
What drives private sector exit from infrastructure Economic crises and other factors in the cancellation of private infrastructure projects in developing countries (English). Gridlines,No. 46 Washington, D.C. : World Bank Group. https://documents.worldbank.org/curated/en/867251468150306230/What-drives-private-sector-exit-from-infrastructure-Economic-crises-and-other-factors-in-the-cancellation-of-private-infrastructure-projects-in-developing-countries