Innovative financial intermediation and long term capital pools for infrastructure

2016 ◽  
Vol 21 (3) ◽  
pp. 231-252 ◽  
Author(s):  
Thillai Rajan Annamalai ◽  
Smitha Hari
Keyword(s):  
Private Sector ◽  
Financial Intermediation ◽  
Emerging Countries ◽  
Infrastructure Development ◽  
Infrastructure Projects ◽  
Multiple Perspectives ◽  
Multiple Sources ◽  
Content Type ◽  
Private Sector Investment

Purpose Developing countries are increasingly looking to private sector investment for infrastructure development. Successful development of private infrastructure projects, however, depends on adequate availability of long-term debt to complement private sector equity. As domestic bond markets in many emerging countries are not very deep, availability of long-term debt funding for infrastructure has been limited. Recently, a new form of financial intermediation has emerged in India with the creation of infrastructure debt funds (IDFs) to create capital pools for long-term debt funding. This paper aims to analyse the effectiveness of IDFs for financing infrastructure projects. Design/methodology/approach This paper uses a case study approach. The case studies were written using both secondary and primary information. Secondary information was obtained from various sources such as policy papers, websites and other published sources. Primary information was obtained from interviews with the top management of three IDFs. Information obtained from multiple sources was triangulated for consistency and correctness. Findings IDFs have emerged as an effective intermediation mechanism for attracting long-term capital by offering a new investment product with appropriate risk-adjusted returns. For the fund seekers, IDFs are able to provide long-term capital at lower rates and higher flexibility. Unlike commercial banks, IDFs are able to add value to the projects apart from funding by periodic monitoring of the projects. Practical implications Creating new forms of financial intermediation can help in reducing the financing gap for infrastructure projects, especially in emerging countries. Originality/value IDFs have been analysed from a perspective of financial intermediation. The effectiveness of IDFs in bridging the funding shortfall has been evaluated from multiple perspectives.

scholarly journals Zambian farm blocks: A vehicle for increased private sector investments

2020 ◽  
Vol 5 (1) ◽  
pp. 817-825
Author(s):  
Susanna L. Middelberg ◽  
Pieter van der Zwan ◽  
Cobus Oberholster
Keyword(s):  
Private Sector ◽  
Land Tenure ◽  
Agricultural Sector ◽  
Agricultural Land ◽  
Labour Productivity ◽  
Land Development ◽  
Policy Uncertainty ◽  
Infrastructure Development ◽  
Structured Interviews ◽  
Private Sector Investment

AbstractThe Zambian government has introduced the farm block development programme (FBDP) to facilitate agricultural land and rural development and encourage private sector investment. This study assessed whether the FBDP achieves these goals. Key obstacles and possible opportunities were also identified and, where appropriate, specific corrective actions were recommended. Qualitative data were collected through semi-structured interviews conducted in Lusaka with various stakeholders of the FBDP. The FBDP is designed to facilitate agricultural land development and encourage private sector investment. However, the programme falls far short in terms of implementation, amidst policy uncertainty and lack of support. This is evident by the insecurity of land tenure which negatively affects small- and medium-scale producers’ access to financing, lack of infrastructure development of these farm blocks, and constraints in the agricultural sector such as low labour productivity and poor access to service expertise. It is recommended that innovative policy interventions should be created to support agricultural development. This can be achieved by following a multistakeholder approach through involving private, public and non-profit sectors such as non-governmental organisations (NGOs) and donors.

Infrastructure deficit and opportunities in Africa

2017 ◽  
Author(s):  
Albert Mafusire ◽  
Zuzana Brixiova ◽  
John Anyanwu ◽  
Qingwei Meng
Keyword(s):  
Private Sector ◽  
Low Income ◽  
Private Investment ◽  
Low Income Countries ◽  
Infrastructure Development ◽  
African Countries ◽  
Policy Makers ◽  
Private Sector Investment ◽  
Investment Opportunities ◽  
Financing Infrastructure

Private sector investment opportunities in Africa’s infrastructure are huge. Regulatory reforms across African countries are identified as critical to the realization of the expected investment flows in the infrastructure sector. However, planners and policy makers need to note that there are infrastructure deficiencies in all subsectors with low income countries (LICs) in Africa facing the greatest challenge. Inefficiencies in implementing infrastructure projects account for USD 17 billion annually and improving the capacity of African countries will help minimize these costs. In this regard, the donor community must play a greater role in African LICs while innovative financing mechanisms must be the focus in the relatively richer countries of the continent. Traditional sources of financing infrastructure development remain important but private investment is critical in closing the current gaps. Countries need to devise mechanisms to exploit opportunities and avoid pitfalls in investing in infrastructure.

Public–private partnerships for sustainable infrastructure development in Ghana: a systematic review and recommendations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Isaac Akomea-Frimpong ◽  
Xiaohua Jin ◽  
Robert Osei-Kyei ◽  
Augustine Senanu Kukah
Keyword(s):  
Sustainable Development ◽  
Sustainable Development Goals ◽  
Clean Energy ◽  
Project Managers ◽  
Infrastructure Development ◽  
Infrastructure Projects ◽  
Content Type ◽  
Public Projects ◽  
Climate Action ◽  
Development Goals

PurposeThe contribution of the public–private partnership (PPP) model towards the achievement of the United Nation (UN)'s Sustainable Development Goals (SDGs) has been widely acknowledged. However, limited studies have shed light on the connection between PPPs and the achievement of these coveted goals in Ghana. In this study, the authors aimed at analysing and synthesising the existing literature on the use of PPP to achieve sustainability in infrastructure projects in the country.Design/methodology/approachA three-step approach was used to retrieve and review 60 selected articles aided by content analysis.FindingsThe analysis showed that all existing relevant publications on the application of the PPP model to attain UN’s SDGs in the country are organised around dominant themes, such as poverty alleviation, urban development, waste management and risk management. However, the review revealed little studies exist on pertinent issues relating to PPPs and sustainable development goals, such as climate action, critical resilience, sustainable finance and clean energy.Research limitations/implicationsAlthough the study is limited to 60 articles in Ghana, the results reveal pertinent gaps for further research studies to achieve sustainable infrastructural development in Ghana and other countries.Practical implicationsHolistically, the outcome of this study will serve as a guide to project managers to understand essential issues on attaining sustainability on public projects.Originality/valueThis article contributes to the literature and practice on the significance of PPP in mainstreaming UN's SDGs in public infrastructure projects.

Early impact of Covid-19 on private sector employees finance homeownership in Kingdom of Saudia Arabia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raed Khamis Alharbi
Keyword(s):  
Private Sector ◽  
Large Scale ◽  
Housing Finance ◽  
Policy Framework ◽  
Content Type ◽  
Financial Uncertainty ◽  
Key Stakeholders ◽  
Negative Impacts ◽  
Future Policy

Purpose For almost two years, the economic shocks and financial uncertainty created by the Covid-19 pandemic have affected all sectors. The private sector employees may be the worst hit. This is because of the lockdown across many countries, including the Kingdom of Saudi Arabia (KSA), leading to income irregularities. Studies exploring private-sector employees concerning housing finance for the houses purchased and how the lockdown has affected their sources of income for repayment plans are scarce. Therefore, this study aims to investigate the possible early negative impacts of Covid-19 on private sector employees’ housing finance homeownership in KSA. Design/methodology/approach A phenomenology type of qualitative research was used. Data were sourced from three cities (Riyadh, Al-Qassim and Medina) and three mortgage banks across KSA. Virtual interviews via Zoom and WhatsApp video calls were conducted with engaged participants (bankers, government agencies and private sector employees). Thematic analysis was adopted, and the analysed data was presented in themes. Findings Findings show that the partial and full lockdown resulted in income irregularities in many private businesses. Also, findings identified downsizing, leading to large-scale unemployment, half-monthly income for employees, loss of profit, human resources wastage, etc. Findings reveal that because of the economic shock, many homeowners have not been able to meet up with their monthly mortgage repayment obligation. Also, the absence of financial support in form of socioeconomic needs has not helped the matter. Research limitations/implications The paper is limited to the early negative impacts of Covid-19 on private sector employees’ housing finance homeownership in KSA and data collected via Zoom and WhatsApp video calls across the three main cities. The recommendations that will emerge from this study may be adopted by other Gulf and Islamic countries with similar homeownership repayment challenges. Practical implications This study would stir key stakeholders, especially the policymakers and mortgage institutions to consider future policy principles that focus on who is at the highest risk for housing-related hardships because of the Covid-19 or future pandemic. The outcome can be used to develop an equitable housing policy framework to foster long-term economic mobility and be validated in the future by scholars. Originality/value Similar research in this area is limited, which makes this study one of the pioneering attempts to investigate the early negative impacts of Covid-19 on private sector employees’ housing finance homeownership in KSA. The paper sheds light on the emerged early negative impacts and proffer feasible possible solutions to promote homeownership amongst Saudi citizens.

Mega infrastructure developments in Macao in light of increasing tourism and regional mobility

2017 ◽  
Vol 9 (3) ◽  
pp. 289-299 ◽  
Author(s):  
Meng-Cheng Ni
Keyword(s):  
Rapid Growth ◽  
Design Methodology ◽  
Infrastructure Development ◽  
Coverage Area ◽  
Content Type ◽  
Regional Mobility ◽  
The Pearl River ◽  
Historic City ◽  
The City

Purpose This paper aims to provide a general review of the massive infrastructures now being developed in Macao and its surrounding area from a transportation and mobility perspective. The purpose of the paper is to highlight how rapid growth in tourism and regional mobility can transform and integrate a small historic city like Macao as part of its larger neighbours. In so doing, the paper raises important questions about the cultural nature and identity of Macao. Design/methodology/approach The paper provides a geographic description of major projects and trends in regional mobility of residents and visitors in the study’s coverage area (the Pearl River Delta), drawing principally from several technical reports and studies in which the author took part. Findings The massive mega infrastructures now being developed in and around Macao provide better and closer integration with its neighbours and will likely enhance the efficiency of travel to and from the city. However, this may forever alter the nature of the city and its inhabitants. Originality/value The paper provides a critical exposé of infrastructure development associated with and spurred by rapid growth in tourism and regional mobility and raises questions of necessity and the long-term transformation such massive changes bring to tourist cities and its residents.

West Africa ports compete for regional dominance

2015 ◽  
Keyword(s):  
Economic Growth ◽  
West Africa ◽  
Private Sector ◽  
Ivory Coast ◽  
Oil Prices ◽  
Infrastructure Projects ◽  
Asian Countries ◽  
Content Type ◽  
Port Infrastructure ◽  
Port Expansion

Subject West Africa ports development. Significance Economic growth and rising trade volumes with Asian countries are straining West Africa's commercial port capacities. Various port infrastructure projects are underway as states compete to become shipping gateways for the region. Ever larger container ships are also forcing states to offer deeper water berth ports. Ivory Coast, Ghana and Nigeria are leading the race. Impacts Low oil prices should not affect port expansion as the costs are borne by competing private sector operators. The question of whether the operator-driven port model delivers equivalent benefits to individual economies will grow as profits rise. European private sector port operators continue to dominate, but competition from Asian companies such as DP World is growing.

Mexico projects will not drive post-pandemic recovery

2020 ◽  
Keyword(s):  
Economic Growth ◽  
Strategic Alliances ◽  
State Governments ◽  
Infrastructure Projects ◽  
Content Type ◽  
Investor Confidence ◽  
Energy Needs ◽  
Exploration And Production ◽  
Term Energy

Significance The package of 39 projects, worth MXN297bn (USD14.5bn), aims to boost post-pandemic economic growth through privately funded investments or strategic alliances between private entities and state governments in infrastructure, energy and communications. Several government flagship infrastructure projects also receive increased resources in the proposed 2021 budget. Impacts The ARE will not solve Mexico’s long-term energy needs as it excludes major areas such as hydrocarbons exploration and production. The 190,000 jobs that the ARE may create will do little to offset the 2 million formal jobs lost due to the pandemic in March-August. Most of the employment that will be created by the ARE and government priority projects will be temporary, low-paid jobs. Concerns regarding contractual security under the current administration will continue to dampen investor confidence.

Japan will reboot its approach to African development

2019 ◽  
Keyword(s):  
Private Sector ◽  
Development Model ◽  
Policy Space ◽  
Content Type ◽  
African Development ◽  
International Conference ◽  
Private Sector Investment ◽  
Government Aid ◽  
Japanese Companies

Subject Japan's Africa development model. Significance The latest edition of Japan’s Tokyo International Conference on African Development (TICAD) concluded on August 30, with the summit largely continuing the developed world’s shift from traditional government-to-government aid to a focus on trade and private-sector investment. Impacts With 42 African leaders attending, the conference will help strengthen and create new bilateral linkages. The summit’s major themes will provide policy space for initiatives focusing on small, medium and micro-sized enterprise (SMME) development. The focus on SMMEs, conceptualised as a solution to many of the continent’s problems, may entrench the developing ‘business-first’ mindset. The conclusion of 110 new memorandums of understanding between Japanese companies and African states will be seen as a key success.

scholarly journals Forecasting the Long Term Economics Status of Bangladesh Using Machine Learning Approaches from 2016-2036

2019 ◽  
Vol 1 (1) ◽  
pp. 58-64
Author(s):  
Minhaz Uddin ◽  
Shraboni Rudra ◽  
Mohammed Nazim Uddin
Keyword(s):  
Linear Regression ◽  
Private Sector ◽  
Developing Country ◽  
Economic Condition ◽  
National Income ◽  
Gradient Boosting ◽  
Learning Approaches ◽  
Private Sector Investment ◽  
Personal Saving

It is a piece of happy news for us that Bangladesh has been now converted to a developing country. The United Nation and World Bank have recognized it. But they have a condition that we need to continue this economic progress till 2024 for getting a permanent recognition. The economic condition depends on many factors like Gross Domestic Product (GDP), Personal Saving, Private Sector Investment, Gross National Income (GNI) per capita, Human Assets Index (HAI) and Economic Vulnerability Index (EVI). This paper portrays the forecast of the long-term economic condition of Bangladesh as an independent variable which is a year and the dependent variables are GDP, private sector investment and personal saving. The living conditions of a country depend on GDP. Personal saving and Private Sector Investment are also important parts of a country’s economy. If we will forecast these attributes properly, then we can determine the economic condition of Bangladesh and living status of the people more accurately. Therefore, we can determine that Bangladesh can fulfil the condition of getting permanent recognized as a developing country. For forecasting these attributes, we proposed a model which consists of Karl Pearson’s coefficient and modified linear regression techniques. For improving performance, we modify linear regression by gradient boosting.  This experiment shows that our model gives us more accurate forecasting about GDP, Private sector investment and Personal Saving.

Multilateral development banks pivot to private sector

2017 ◽  
Keyword(s):  
Private Sector ◽  
World Bank ◽  
Private Investment ◽  
Infrastructure Development ◽  
Content Type ◽  
The World Bank ◽  
Private Sector Participation ◽  
Development Banks ◽  
Conflict Affected States ◽  
Regional Development Banks

Subject Encouraging more private sector participation in infrastructure development. Significance In April 2017 World Bank President Jim Yong Kim announced that the institution would increasingly focus on catalysing commercial capital for infrastructure development. This should provide impetus for public funds to be redeployed to leverage private investments, including in the poorest, riskiest countries. Aiming to be a ‘facilitator of capital’ as well as its historic function as a ‘provider of capital’, the World Bank will deploy new facilities and instruments for private sector participation, and increase its support for institutional, policy and regulatory reforms in developing countries. Impacts Scaled-up MDB operations in frontier economies will catalyse more private investment, particularly in fragile and conflict-affected states. New World Bank facilities and instruments will channel more capital from institutional investors towards emerging markets infrastructure. If World Bank repositioning is emulated by regional development banks, the entire landscape of development finance will be transformed.

Sign in / Sign up

Export Citation Format

Share Document