Private Enterprise and Financial Markets > Infrastructure and Financial Markets
Directory of Innovative Financing
By Robert Wright (10/95, En)
The nations of Latin America and the Caribbean are demanding new physical infrastructure in roads, power plants and distribution, telecommunications, ports, airports, water and sanitation systems, in order to make up for past neglect and keep up with future needs. With other pressing needs and the significant amounts of resources required, the public sector can no longer finance all the work that needs to be done. Instead, governments worldwide have begun undertaking infrastructure projects, large and small, with the participation of private investors under a variety of financing schemes: Build Own Operate (BOO), Build Own Operate Transfer (BOOT), Build Own Transfer (BOT), privatization, concession, and more. The experience of the last few years teaches us that these transactions are complex and time consuming. While there have been some impressive successes, unfortunately many projects never got off the ground, others have taken more time to develop than planned, and some have run into financial trouble after only a few years of commercial operations.
The Infrastructure and Financial Markets Division of the IDB has researched some of the most innovative transactions worldwide that increase private sector participation in infrastructure. The following pages provide concise summaries of almost 50 illustrative projects from a variety of sectors and countries. They cover commercial loan syndications, equity funds, capital market transactions, concession agreements, and other aspects of the complex financial engineering that promises to turn proposals for new infrastructure into reality.
We have specifically sought out the deals that are seen in the markets as innovative and precedent-setting. Most of our research has been done in consultation with project sponsors, advisors, and financiers in the private sector. While this is only a modest attempt and in no way a comprehensive survey of what has been done, we hope these summaries will help to generate new ideas that can then be applied to meeting the infrastructure needs of Latin America and the Caribbean.
This Directory was prepared by the International Development Business Consultants (Rob Wright) and the Infrastructure and Financial Markets Division (Martin Chrisney, Gabriela Garcìa). The Directory is based on information available to the public and care was taken in its preparation; however, the Inter-American Development Bank is not responsible for errors of fact or opinion.
Antonio Vives
To see project description(s) click on country title below.
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Infrastructure
and Financial Markets Division
Private Enterprise and Financial Markets Subdepartment
Sustainable Development Department
Inter-American Development Bank
Last updated: 02/26/07
