Articles on Infrastructure Finance

Articles on Infrastructure Finance

• Infrastructure Finance: An Introduction

  Traditional economists are of the opinion that infrastructure is the heart of the economy. Empirical data clearly shows that given...

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• Infrastructure as an Asset Class

  As asset class is a group of assets that have similar investment characteristics amongst themselves. At the same time, their...

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• Infrastructure Finance Projects: Major Sources of Funding

  It is a known fact that the world is in great need of infrastructure projects and, therefore, infrastructure finance. Developing...

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• Why Doesn’t the Private Sector Invest In Infrastructure Projects?

  As explained in the previous articles, the infrastructure sector is facing a significant funding gap. There is an urgent need...

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• The SPV Structure in Infrastructure Finance

  The Special Purpose Vehicle (SPV) or Special Purpose Entity (SPE) is one of the most used tools in infrastructure financing....

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• Financing Needs of Infrastructure Projects at Different Stages

  Infrastructure projects typically last for many years. It is not uncommon for these projects to last for decades. These long...

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• Different Types of Contracts for Infrastructure Projects

  Private-public partnerships are a common mechanism used while creating infrastructure projects. In general, a public-private partnership involves a joint venture...

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• Distribution of Risks in an Infrastructure Project

  Infrastructure projects tend to have a lot of financial risks. In many cases, the risks are poorly managed. In fact,...

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• Risks Faced By Infrastructure Projects in Emerging Markets

  Infrastructure projects are most needed in developing nations. These are the countries where infrastructure projects are able to create the...

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• Bank Loans vs. Bonds: Debt Financing in Infrastructure Projects

  Debt financing is the most important source of finance for infrastructure projects. In most infrastructure projects, the majority of the...

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• Parties Involved in Infrastructure Debt Issuance

  Bonds are commonly issued during infrastructure projects. The company holding the equity stake is generally the one issuing the bonds....

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• External Credit Enhancement in Infrastructure Financing

  Infrastructure projects continue for a long period of time. Sometimes these projects continue for decades. Hence, they need long term...

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• Revenue Bonds and the Cash Trap Mechanism

  Infrastructure projects last for many years. As a result, different sources of funding are used at different points of time...

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• Managing Revenue Risks in an Infrastructure Project

  Equity and debt are the most commonly used sources of funding when it comes to infrastructure financing. However, in many...

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• Cost Overruns in Infrastructure Projects

  The risk involved in an infrastructure project does not remain the same throughout the life of a project. Instead, the...

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• Causes for Cost Overruns in Infrastructure Projects

  In the previous article, we explained the concept of cost overrun. We also explained how cost overruns have a negative...

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• Third-Party Risks in an Infrastructure Project

  In the previous few articles, we have come across the various types of risk which are present in an infrastructure...

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• Vendor Finance in Infrastructure Projects

  Debt and equity from investors remain the two conservative sources of funding when it comes to infrastructure financing. However, with...

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• Securitization in Infrastructure Finance

  Bank loans are the dominant source of financing for infrastructure projects. This is truer in the case of developing countries...

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• Leasing in Infrastructure Finance

  In the previous article, we have studied about how vendor financing is being used as an alternate mechanism of finance...

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• Strategic Use of Land in Infrastructure Financing

  A lot of developing countries do not have the finances required to build large scale infrastructure projects. However, these countries...

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• Usage of Collateralized Debt Obligations (CDO) in Infrastructure Finance

  Infrastructure finance is an extremely complicated and advanced field. There are many complex financial instruments related to infrastructure finance which...

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• Infrastructure Investments in Renewable Energy

  When the word infrastructure project is used, it brings to mind images of bridges, railways, and even ports, which are...

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• Should the Government be an Equity Partner in Infrastructure Projects?

  Every infrastructure project around the world needs one or more equity partners. This equity partner acts as an entrepreneur and...

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• Lifecycle of Public Private Partnership (PPP) Projects

  In the previous articles, we have undertaken careful consideration of how public-private partnership (PPP) projects work. A lot of details...

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• Payment Mechanisms in Public-Private Partnerships

  In every public-private partnership, it is the job of the public party to provide remuneration to the private party. There...

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• Adjustment Mechanisms in Publich-Private Partnership (PPP) Contracts

  A contract is said to be well formed if it is able to cover all the possibilities and provide guidance...

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• Early Termination of a Public Private Partnership

  Public private partnership is a widely used model when it comes to infrastructure financing. However, it needs to be understood...

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