Developing countries, including middle-income and low-come, have limited access to long term, low cost private sector capital due to the perception of unacceptable risks, political, regulatory, credit, and currency.
INFRADEV enables Risk Mitigation Product providers from the public and private sectors to provide information in one “marketplace” about their products that can be used to reduce these risks, and enable access to longer term, lower cost capital.
BENEFITS TO DEVELOPING COUNTRY GOVERNMENT OFFICIALS
- Access Private Sector Finance and Support by submitting project-specific information, which directly reaches potential sponsors, financial institutions and providers of risk mitigation, who can offer their financial or technical support.
- Facilitate Investment Decisions and Resolve Investment Impediments by providing information on infrastructure investment environment which helps interested sponsors and investors make rational investment decisions fast.
- Obtain Direct Feedback on Needed Reforms and New Sector Strategies in the government’s development plans or regulatory regimes from members representing the supply side of infrastructure finance and risk mitigation and rating agencies in order to attract private sector finance for infrastructure.
- Be Effective in the Development of new Infrastructure Projects and their Finance, by learning how risk mitigation tools can leverage the government’s balance sheet and re-distribute unbearable project risks away from the government or how most recent successful infrastructure transactions were structured.
BENEFITS TO PROJECT SPONSORS & PRIVATE SECTOR CAPITAL PROVIDERS
- Identify New Business Opportunities and Shape the Investment Climate by accessing project pipelines submitted by host governments and discussing regulatory regimes, project assignment processes and other elements of the infrastructure investment climate with the respective host government members of the Network.
- Obtain Tailored Risk Mitigation Support by shaping the development of innovative risk mitigation tools and providing testimonial on the effectiveness of existing risk mitigation products.
BENEFITS TO RISK MITIGATION PROVIDERS
- Improve the Outreach and Use of Existing Risk Mitigation Products by marketing their specific products through the Risk Mitigation Product Directory and illustrating through recent transactions the concrete product benefits.
- Create Demand-Driven Risk Mitigation Innovations by testing innovative product ideas and soliciting feedback from target clients such as host governments and sponsors.
RESULTING BENEFITS TO GENERAL PUBLIC include:
- Governments are better able to realize national development objectives and close the basic infrastructure supply gap
- Project participants’ risk awareness improves and infrastructure project risks are better distributed to protect the end-user from unbearably high tariff increases
- The improved infrastructure supply results in overall enhanced investment and increased employment
- Scarce public resources can be focused on human and social development Inefficiencies/miscalculations in intergovernmental coordination in enhancing the infrastructure supply are reduced
- Partnerships (international, domestic; public, private) are facilitated