Infrastructure is sorely needed in almost every corner of Globe. Indeed, according to the Asian Development Bank, $8 trillion needs to be invested in infrastructure in Emerging Countries by 2022 But how will even a fraction of this amount be raised? How much infrastructure will actually get built, where and by whom? And thus where are the opportunities for enders, investors and market players? In today’s volatile markets, there is a renewed appreciation of the relatively stable, long term cash flows that stem from investment in infrastructure. An increasing proportion of such infrastructure is by necessity being financed on a project – or limited resource – basis. At the same time, many emerging markets are being re-evaluated as less risky than previously thought.
Thus, attention to project finance in Emerging Countries has rarely been greater. But they all need to build large, long term infrastructure assets. The potential business is huge, but the practicalities can be challenging. Project finance enables joint ventures to raise focused, risk-sharing finance in key industries and is the leading method for cash strapped governments to introduce private sector skills, disciplines and funding in sectors ranging from transportation, Public-Private Partnership (PPP), power, oil and gas, telecom, mining and more.