This article explains the definition of infrastructure financing. It also explains the various characteristics of infrastructure projects and also lists down their types.
Articles on Infrastructure Finance
This article explains how infrastructure as an asset class differs from other asset classes. Some of the defining features of infrastructure financing have been explained in detail in this article.
This article lists the various sources of infrastructure financing. The possible funding avenues, as well as the pros and cons of each, have been listed down in this article.
This article lists the problems faced by the private sector when they try to invest in infrastructure projects. The impact of these roadblocks has also been explained in detail.
This article explains what a Special Purpose Vehicle structure is. It explains the various parties involved in the structure and the roles and responsibilities of each party. Lastly, it also explains the benefit of using this complicated structure in order to finance infrastructure projects.
This article explains how the financing needs of infrastructure projects change according to the stage of investment. The contrasting needs of the three different stages of the project have been explained in detail in this article.
This article explains the different types of contractual arrangements that are commonly used to execute public-private partnership infrastructure projects. The different types of arrangements, as well as the risks associated with each arrangement, has been explained in detail in this article.
This article explains the concept of the distribution of risks in an infrastructure project. It first provides an example of the incorrect way to distribute risks. Then it explains how risks should be distributed amongst different parties that are capable of managing them well.
This article provides information about the additional risks faced by infrastructure companies while executing projects in emerging economies. The cause and impact of each risk have been explained in detail in this article.
This article explains the benefits of using bank loans for infrastructure projects. A comparison has been made between bank loans and bonds to highlight the various ways in which bank loans are better suited to infrastructure projects.
This article explains some of the key decisions which an infrastructure company needs to make when they decide to issue infrastructure bonds. The alternatives available to decision-makers and the pros and cons of the alternatives have been listed in the article.
This article explains the various parties which are involved in bond issuance. It also explains the roles performed by each party as well as the responsibility which needs to be taken by them.
This article explains the concept of credit enhancement. It explains how credit enhancement creates utility for investors. Lastly, the various mechanisms of enhancing credit and the pros and cons of each have been listed in the article.
This article explains the concept of revenue bonds. It provides a detailed explanation of the working of revenue bonds. It also explains how the cash flows are apportioned in the case of a revenue bond. The cash trap mechanism has also been explained in detail.
This article explains the concept of risk mitigation from project revenues. It explains the various types of agreements which are commonly used in order to reduce the inherent riskiness and stabilize project cash flows.
This article provides basic information about what a cost overrun is. It explains how cost overruns have a negative impact on all the stakeholders involved. It also explains the various ways which can be used to mitigate the tremendous risk which is posed by this overrun.
This article explains why cost overruns are so common. It explores the commonly stated reasons behind cost overruns. It then tries to find out whether these cost overruns happen randomly or whether they are the result of a systematic focus on underplaying the costs and risks involved before the actual execution of the project.
This article explains the concept of third party risks in infrastructure projects. It lists the third party risks which are commonly faced during infrastructure projects. It also explains how these risks can be mitigated in order to ensure the success of the underlying project.
This article explains the concept of vendor financing and how it applies to infrastructure projects. The advantages and disadvantages of vendor financing have been explained in detail in this project.
The article explains how securitization can be used in infrastructure financing. It also explains the shortcomings of securitization and why it may not be useful in several cases.
This article explains the use of leasing in infrastructure financing. It also explains the benefits that leasing provides in an infrastructure project. The various types of leases commonly used by infrastructure finance companies have also been explained in detail in this article.
This article explains why land is a strategic asset when it comes to infrastructure development. It also explains how the government can unlock the value of land in order to fund infrastructure projects.
This article provides an introduction to collateralized debt obligations in the field of infrastructure finance. It explains the various reasons why collateralized debt obligations add value to infrastructure financing. The reasons behind the increasing popularity of CDOs have also been explored in this article.
This article provides information about infrastructure investments in renewable energy projects. It also explains the benefits of investing money in such projects. Lastly, the risks related to renewable energy projects have also been explained in detail in this article.
This article lists the various reasons which are given by the government to justify taking an equity stake in a project. It details the arguments provided by the government and then debunks the same arguments by providing alternate reasoning.
This article provides a complete view of the lifecycle of a PPP project. It explains the different stages that a project has to go through before it is finally selected for implementation.
This project provides an overview of the various types of payment mechanisms that are commonly used in public-private partnerships. It provides the pros and cons of each payment mechanism. It also explains why certain mechanisms are better suited for certain types of projects.
This article explains the concept of adjustment mechanism in public private partnership projects. It explains the reason behind the existence of such a mechanism. It also explains the various ways in which this mechanism is implemented in order to restore balance to the contract.
This article explains the concept of early termination of infrastructure projects. It also explains the various scenarios in which early termination becomes a reality and how the counterparties are compensated in such cases.
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