Bridging the Infrastructure Gap: Innovative financing and investment models for emerging economies

Anil Kashyap, J. Berry

Research output: Contribution to conferencePaper

Abstract

Infrastructure provision is a multidimensional problem for governments and businesses globally. Decades of under-investment within developed economies combined with an insatiable appetite for infrastructure within emerging economies has culminated in an infrastructural deficit estimated at circa US$50 trillion over the next 25 years (Ernst and Young, 2010). The scale of the global infrastructural investment challenge markedly exceeds public sector capacity. Indeed, a central theme of national government policies pertaining to infrastructure provision has been premised upon partnership based procurement. Central to the expansion in partnership-based procurement has been the international roll-out of the Public Private Partnership (PPP) model, which has now been adopted in more than 40 countries around the world. Within emerging economic markets partnership models are being widely used in the development of transport related infrastructure including roads and ports (air and sea) as well as energy provision. However, investors in complementary sectors such as health and education are using core infrastructure to hedge risk relative to the returns offered in traditional asset classes. This paper utilises synthesis of structured interviews from financial institutions, (banks, private equity and debt funds), policy makers and infrastructure development companies. Infrastructure Journal (IJ) data will also be used to analyse the financial structure (debt-equity ratios) and risk-return characteristics of partnership models globally across the different stages of the infrastructure provision at pre-development, development and post-development stages.
Original languageEnglish
Publication statusPublished - 2014
Event21st Annual European Real Estate Society Conference - Bucharest, Romania
Duration: 25 Jun 201428 Jun 2014

Conference

Conference21st Annual European Real Estate Society Conference
Abbreviated titleERES
CountryRomania
CityBucharest
Period25/06/1428/06/14

Fingerprint

Emerging economies
Financing
Procurement
Government
Equity
Structured interview
Financial structure
Roads
Education
Hedge
Public sector
Energy
Private equity
Assets
Government policy
Underinvestment
Politicians
Investors
Relative risk
Private debt

Bibliographical note

This paper is not available on the repository. It was given at the 21st Annual European Real Estate Society Conference. ERES: Conference. Bucharest, Romania, 2014.

Keywords

  • Partnerships
  • Investment
  • Finance
  • Emerging Markets and Development

Cite this

Kashyap, A., & Berry, J. (2014). Bridging the Infrastructure Gap: Innovative financing and investment models for emerging economies. Paper presented at 21st Annual European Real Estate Society Conference, Bucharest, Romania.

Bridging the Infrastructure Gap: Innovative financing and investment models for emerging economies. / Kashyap, Anil; Berry, J.

2014. Paper presented at 21st Annual European Real Estate Society Conference, Bucharest, Romania.

Research output: Contribution to conferencePaper

Kashyap, A & Berry, J 2014, 'Bridging the Infrastructure Gap: Innovative financing and investment models for emerging economies' Paper presented at 21st Annual European Real Estate Society Conference, Bucharest, Romania, 25/06/14 - 28/06/14, .
Kashyap A, Berry J. Bridging the Infrastructure Gap: Innovative financing and investment models for emerging economies. 2014. Paper presented at 21st Annual European Real Estate Society Conference, Bucharest, Romania.
Kashyap, Anil ; Berry, J. / Bridging the Infrastructure Gap: Innovative financing and investment models for emerging economies. Paper presented at 21st Annual European Real Estate Society Conference, Bucharest, Romania.
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AB - Infrastructure provision is a multidimensional problem for governments and businesses globally. Decades of under-investment within developed economies combined with an insatiable appetite for infrastructure within emerging economies has culminated in an infrastructural deficit estimated at circa US$50 trillion over the next 25 years (Ernst and Young, 2010). The scale of the global infrastructural investment challenge markedly exceeds public sector capacity. Indeed, a central theme of national government policies pertaining to infrastructure provision has been premised upon partnership based procurement. Central to the expansion in partnership-based procurement has been the international roll-out of the Public Private Partnership (PPP) model, which has now been adopted in more than 40 countries around the world. Within emerging economic markets partnership models are being widely used in the development of transport related infrastructure including roads and ports (air and sea) as well as energy provision. However, investors in complementary sectors such as health and education are using core infrastructure to hedge risk relative to the returns offered in traditional asset classes. This paper utilises synthesis of structured interviews from financial institutions, (banks, private equity and debt funds), policy makers and infrastructure development companies. Infrastructure Journal (IJ) data will also be used to analyse the financial structure (debt-equity ratios) and risk-return characteristics of partnership models globally across the different stages of the infrastructure provision at pre-development, development and post-development stages.

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