Government policies to enhance access to credit for infrastructure-based PPPs: an approach to classification and appraisal

Abstract

Governments across the world have introduced a variety of instruments to enhance private investors’ appetites for public–private partnership (PPP) projects. The use of such instruments has become a core component of development and growth policies, for example by the EU as part of the Junker Plan. This paper provides a comprehensive categorization of these instruments, the risks they target and their effects, at both the project and system level, to support policy-makers to design the most appropriate instruments to attract private capital into infrastructure development.

Keywords:

• Credit enhancement
• guarantees
• infrastructure asset class
• PPP
• risk

Acknowledgment

This paper is based on the findings of a research project delivered for the OECD. The authors are also grateful for financial support by ASPI-Autostrade per l’Italia.

Additional information

Notes on contributors

Veronica Vecchi

Veronica Vecchi is Professor of Public Management at SDA Bocconi School of Management, Milan, Italy.

Mark Hellowell

Mark Hellowell is Senior Lecturer at the School of Social and Political Science, Edinburgh University, UK.

Raffaele della Croce

Raffaele della Croce is Lead Manager: Institutional Investors and Long-Term Investment Team, OECD, Paris, France.

Stefano Gatti

Stefano Gatti is Associate Professor of Banking and Finance, Bocconi University, Italy.