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Mobilizing private finance for local infrastructure in Europe and Central Asia : an alternative public private partnership framework (English)

In recent years, the countries of Europe and Central Asia (ECA) have experienced a marked decline in investments by international private operators/investors in local infrastructure-much in line with the trend observed in other emerging markets. This decline has been particularly significant in the local water and energy sectors. In light of the increasingly tight fiscal constraints faced by governments across ECA, there is a strong need to develop alternative Public-Private Partnership frameworks that could attract private investors to the local infrastructure sector. The growing challenge is to identify and implement adequate financing frameworks and modalities of public support Public-Private Partnerships that would be sufficient to attract participation of private investors in local infrastructure without increasing the risk of moral hazard. The objective of this paper is to explore possible elements of an alternative PPP framework that could help governments in ECA to meet this challenge. The paper identifies key impediments to the development of Public-Private Partnerships in local infrastructure in ECA and discusses the elements of the proposed Public-Private Partnership framework.

Details

  • Author

    Brzeski,W. Jan, Noel,Michel Desire R

  • Document Date

    2005/01/01

  • Document Type

    Publication

  • Report Number

    32338

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Europe and Central Asia,

  • Region

    Europe and Central Asia,

  • Disclosure Date

    2005/05/13

  • Disclosure Status

    Disclosed

  • Doc Name

    Mobilizing private finance for local infrastructure in Europe and Central Asia : an alternative public private partnership framework

  • Keywords

    local infrastructure;private sector participation in infrastructure;Finance & Private Sector Development;water and sewerage;legal and regulatory framework;private participation in infrastructure;natural gas transportation company;private activity in infrastructure;water and sewerage sector;investment need;investment grade credit rating;public-private partnership;private equity investor;foreign exchange risk;private equity fund;public private partnership;policy risk;private equity investment;gas and electricity;electricity and gas;availability of credit;breach of contract;local financial market;municipal infrastructure investment;population by region;municipal water service;decline in investment;export credit agencies;energy and water;term capital;international development agency;global private equity;bilateral development agencies;rates of return;process of convergence;metropolitan urban area;domestic capital market;urban spatial structure;efficiency and quality;partial risk guarantee;international good practice;neutral third party;local government agency;international institutional investor;innovative financial engineering;population at large;quality and efficiency;venture capital investor;Water and Energy;financial service sector;technical assistance loan;point of departure;enforceable property rights;share of equity;public financial institution;law and regulation;service and infrastructure;Cash flow;financial instrument;government interference;private investor;foreign investor;investment experience;investment trust;contract enforcement;mutual fund;Investment Type;vertical integration;Programmatic Approach;cumulative investments;government asset;insurance companies;accounting standard;industrial federation;investment climate;construction industry;communal services;water sector;investor interest;corporate governance;regulatory institution;professional investor;poverty incidence;utility company;political pressure;tariff increase;informal interview;tariff schedule;payment discipline;efficiency gain;downward pressure;local utility;telecom sector;accounting standards;Energy Sector;traditional investor;contract negotiation;accession country;financial investor;fiscal liability;legal framework;political risk;international business;administrative efficiency;economic crisis;investment capital;risk exposure;global lead;multilateral institution;market liquidity;contractual framework;governance standard;lower-income household;Public Infrastructure;guarantee instrument;contract monitoring;market regulation;risk taker;initial tariff;finance infrastructure;public building;currency depreciation;domestic investor;elected officials;credit enhancement;independent board;corporate transparency;financial risk;individual company;anecdotal evidence;firm survey;stock option;independent director;utility sector;effective systems;regulation framework;regional economy;internal change;Judicial Reform;evaluation process;policy priority;political process;shareholder right;accounting framework;judicial independence;socioeconomic benefits;management control;focus group;private power;investment decision-making;future investment;primary reason;home country;adequate tariff;opportunity cost;investor attitude;home countries;lease contract;news source;formal interviews;parent company;debt service;arbitration procedure;investment program;primary vehicles;investment commitment;sectoral reform;financial crisis;investment opportunities;multilateral agency;individual transaction;regulatory environment;market competition;greenfield investment;administrative barrier;private entity;private sponsor;minority participation;public finance;subsequent years;project costing;moral hazard;low-income household;subsidy scheme;broad agreement;budget loan;accreditation system;massive investment;land market;utility transmission;adequate financing;socioeconomic feasibility;government guarantee;public support;market activity;Urban Infrastructure;regulation instrument

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Citation

Brzeski,W. Jan Noel,Michel Desire R

Mobilizing private finance for local infrastructure in Europe and Central Asia : an alternative public private partnership framework (English). Working paper no. 46 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/811131468022483734/Mobilizing-private-finance-for-local-infrastructure-in-Europe-and-Central-Asia-an-alternative-public-private-partnership-framework