Financing the Boom in Public-Private Partnerships in Indian Infrastructure : Trends and Policy Implications
India has seen rapid growth in recent years in its program of infrastructure public-private partnerships (PPPs). Despite the surge in demand for finance, local financial markets coped well over the period to 2007 and even offered better terms as th...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/12/10201103/financing-boom-public-private-partnerships-indian-infrastructure-trends-policy-implications http://hdl.handle.net/10986/10577 |
| Summary: | India has seen rapid growth in recent
years in its program of infrastructure public-private
partnerships (PPPs). Despite the surge in demand for
finance, local financial markets coped well over the period
to 2007 and even offered better terms as they became more
used to the PPP model. But areas of possible concern have
developed. Gearing has increased significantly, and
financing terms mean that PPPs are more exposed to interest
rate volatility causes for concern in a period of rising
rates and reduced liquidity. Further growth in PPPs will
likely require a broadening of the sources of financing once
the present financial market turmoil has lessened.
Addressing these concerns will call for policy reforms to
capital markets and concession frameworks. |
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