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Private infrastructure finance and investment in Europe

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  • Inderst, Georg

Abstract

This study discusses the structure and development of private infrastructure finance in Europe in a global context. It examines the contribution of private capital to the financing of infrastructure investment needs. A 'big picture' is created by putting the various financing instruments and investment vehicles into a simple frame, i.e. percentages of GDP. There is scope for the development of alternative financing arrangements (such as public-private partnerships) and investment vehicles (such as project bonds and suitable investment funds). However, the traditional ways of corporate (and public) capital expenditure as well bank lending, need to keep working in Europe. Institutional investors can play a bigger role as a source of finance but expectations should be realistic. There are a number of barriers in place, regulatory and otherwise, that need to be worked on.

Suggested Citation

  • Inderst, Georg, 2013. "Private infrastructure finance and investment in Europe," EIB Working Papers 2013/02, European Investment Bank (EIB).
  • Handle: RePEc:zbw:eibwps:201302
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    References listed on IDEAS

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    10. Inderst, Georg, 2010. "Infrastructure as an asset class," EIB Papers 3/2010, European Investment Bank, Economics Department.
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    Citations

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    Cited by:

    1. Inderst, Georg, 2020. "Social Infrastructure Finance and Institutional Investors. A Global Perspective," MPRA Paper 99239, University Library of Munich, Germany.
    2. Inderst, Georg & Stewart, Fiona, 2014. "Institutional Investment in Infrastructure in Emerging Markets and Developing Economies," MPRA Paper 62522, University Library of Munich, Germany.
    3. Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2014. "Finance and Public-Private Partnerships," RBA Annual Conference Volume (Discontinued), in: Alexandra Heath & Matthew Read (ed.),Financial Flows and Infrastructure Financing, Reserve Bank of Australia.
    4. Inderst, Georg, 2017. "UK Infrastructure Investment and Finance from a European and Global Perspective," MPRA Paper 79621, University Library of Munich, Germany.
    5. Eduardo Engel & Ronald D. Fischer & Alexander Galetovic, 2020. "When and How to Use Public-Private Partnerships in Infrastructure: Lessons from the International Experience," NBER Chapters, in: Economic Analysis and Infrastructure Investment, National Bureau of Economic Research, Inc.
    6. Daniel Wurstbauer & Wolfgang Schäfers, 2015. "Inflation hedging and protection characteristics of infrastructure and real estate assets," Journal of Property Investment & Finance, Emerald Group Publishing, vol. 33(1), pages 19-44, February.
    7. Ponomarev, Yuriy (Пономарев, Юрий), 2018. "Development of the Russian Transport Sector: Current State and Development Prospects [Развитие Транспортного Комплекса России: Текущее Состояние И Перспективы Развития]," Working Papers 061829, Russian Presidential Academy of National Economy and Public Administration.
    8. Nadine Gatzert & Thomas Kosub, 2017. "The Impact of European Initiatives on the Treatment of Insurers’ Infrastructure Investments Under Solvency II," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 42(4), pages 708-731, October.
    9. Roberto Moro Visconti, 2016. "The impact of quantitative easing (QE) on the cost of debt in project finance investments," Public Money & Management, Taylor & Francis Journals, vol. 36(2), pages 129-135, March.
    10. Emily Poole & Carl Toohey & Peter Harris, 2014. "Public Infrastructure: A Framework for Decision-making," RBA Annual Conference Volume (Discontinued), in: Alexandra Heath & Matthew Read (ed.),Financial Flows and Infrastructure Financing, Reserve Bank of Australia.
    11. Daniel Wurstbauer & Stephan Lang & Christoph Rothballer & Wolfgang Schaefers, 2016. "Can common risk factors explain infrastructure equity returns? Evidence from European capital markets," Journal of Property Research, Taylor & Francis Journals, vol. 33(2), pages 97-120, April.
    12. Inderst, Georg, 2015. "Social infrastructure investment: private finance and institutional investors," MPRA Paper 69504, University Library of Munich, Germany.
    13. Wouter Thierie & Lieven Moor, 2016. "The characteristics of infrastructure as an investment class," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 30(3), pages 277-297, August.
    14. Välilä, Timo, 2020. "An overview of economic theory and evidence of public-private partnerships in the procurement of (transport) infrastructure," Utilities Policy, Elsevier, vol. 62(C).
    15. Garrido, Laura & Gomez, Juan & Baeza, María de los Ángeles & Vassallo, José Manuel, 2017. "Is EU financial support enhancing the economic performance of PPP projects? An empirical analysis on the case of spanish road infrastructure," Transport Policy, Elsevier, vol. 56(C), pages 19-28.
    16. Eduardo Engel & Ronald Fischer & Alexander Galetovic & Jennifer Soto, 2019. "Financing PPP Projects with PVR Contracts: Theory and Evidence from the UK and Chile," Documentos de Trabajo 346, Centro de Economía Aplicada, Universidad de Chile.

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    More about this item

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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