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Infrastructure project finance and capital flows : a new perspective

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  • Dailami, Mansoor
  • Leipziger, Danny

Abstract

The success with which middle-income indebted developing countries have gained access to private international finance in the 1990s is a tribute to their own domestic economic performance, international policy in dealing with the debt crisis of the 1980s, and innovation in international financial markets. Emphasizing the role of private infrastructure investment as a vehicle for attracting foreign capital to developing countries in the 1990s, the authors develop an analysis model to examine what determines the credit-risk premium on infrastructure projects in the country-risk environment of developing countries. They also provide tentative quantitative evidence of the importance of macroeconomic and project-specific attributes of project risk. Their key finding is that the market seems to impose a high-risk premium on loans to countries with high inflation and to projects in the road sector.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1861.

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Date of creation: 31 Dec 1997
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Handle: RePEc:wbk:wbrwps:1861

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Keywords: Payment Systems&Infrastructure; Banks&Banking Reform; Financial Intermediation; International Terrorism&Counterterrorism; Environmental Economics&Policies; Financial Intermediation; Economic Theory&Research; Environmental Economics&Policies; Public Sector Economics&Finance; Banks&Banking Reform;

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  1. Calvo, Guillermo A, 1996. "Capital Flows and Macroeconomic Management: Tequila Lessons," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 1(3), pages 207-23, July.
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  18. Dailami, Mansoor & Klein, Michael, 1998. "Government support to private infrastructure projects in emerging markets," Policy Research Working Paper Series 1868, The World Bank.
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Citations

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Cited by:
  1. Kleimeier,Stefanie & William L. Megginson, 2002. "An empirical analysis of limited recourse project," Research Memorandum 066, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  2. Dailami, Mansoor & Hauswald, Robert, 2003. "The emerging project bond market - covenant provisions and credit spreads," Policy Research Working Paper Series 3095, The World Bank.
  3. Stronzik, Marcus & Hunt, Alistair & Eckermann, Frauke & Taylor, Tim, 2003. "The Role of Transaction Costs and Risk Premia in the Determination of Climate Change Policy Responses," ZEW Discussion Papers 03-59, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Mudambi, Ram & Navarra, Pietro, 2002. "Institutions and internation business: a theoretical overview," International Business Review, Elsevier, vol. 11(6), pages 635-646, December.
  5. Hoffmann, M., 2002. "Cross-Country Evidence on the Link between the Level of Infrastructure and Capital Inflows," CEG Working Papers 20024, Trinity College Dublin, Department of Economics.
  6. World Bank, 2009. "Good Governance in Public-Private Partnerships : A Resource Guide for Practitioners," World Bank Other Operational Studies 12665, The World Bank.
  7. Macauley, Molly & Darmstadter, Joel & Fini, John & Greenberg, Joel & Maulbetsch, John & Schaal, A. Michael & Styles, Geoffrey & Vedda, James, 2000. "Can Power from Space Compete?," Discussion Papers dp-00-16, Resources For the Future.
  8. McGovern, T. & Hicks, C., 2004. "Deregulation and restructuring of the global electricity supply industry and its impact upon power plant suppliers," International Journal of Production Economics, Elsevier, vol. 89(3), pages 321-337, June.
  9. Marco Sorge & Blaise Gadanecz, 2004. "The term structure of credit spreads in project finance," BIS Working Papers 159, Bank for International Settlements.
  10. Mathias Hoffmann, 2002. "Cross-Country Evidence on the Link between the Level of Infrastructure and Capital Inflows," Trinity Economics Papers 200210, Trinity College Dublin, Department of Economics.
  11. Dailami, Mansoor & Hauswald, Robert, 2000. "Risk shifting and long-term contracts : evidence from the Ras Gas Project," Policy Research Working Paper Series 2469, The World Bank.
  12. Pierru, Axel & Roussanaly, Simon & Sabathier, Jérôme, 2013. "Capital structure in LNG infrastructures and gas pipelines projects: Empirical evidences and methodological issues," Energy Policy, Elsevier, vol. 61(C), pages 285-291.
  13. Dailami, Mansoor & Klein, Michael, 1998. "Government support to private infrastructure projects in emerging markets," Policy Research Working Paper Series 1868, The World Bank.
  14. Dailami, Mansoor & Ul Haque, Nadeem, 1998. "What macroeconomic policies are"sound?"," Policy Research Working Paper Series 1995, The World Bank.
  15. Arabatzis, Garyfallos & Myronidis, Dimitris, 2011. "Contribution of SHP Stations to the development of an area and their social acceptance," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 3909-3917.
  16. Pargal, Sheoli, 2003. "Regulation and private sector investment in infrastructure - evidence from Latin America," Policy Research Working Paper Series 3037, The World Bank.
  17. Ashraf Bany Mohammed & Jorn Altmann, 2010. "A Funding and Governing Model for Achieving Sustainable Growth of Computing e-Infrastructures," TEMEP Discussion Papers 201062, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jun 2010.
  18. Renato E. Reside, Jr., 2008. "Global Determinants of Stress and Risk in Public-Private Partnerships (PPP) in Infrastructure," DEGIT Conference Papers c013_032, DEGIT, Dynamics, Economic Growth, and International Trade.
  19. Klingebiel, Daniela & Ruster, Jeff, 2000. "Why infrastructure financing facilities often fall short of their objectives," Policy Research Working Paper Series 2358, The World Bank.

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