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GLOBAL:Making the Most Out of Public Finance for Sustainable Transport

The objective of this Knowledge Product was to develop templates for DFI-supported financing structures that maximize the impact of public money in developing sustainable transport projects, particularly those with low cost-recovery from user charges. In particular, the KP concentrated on how developing-country governments can make use of DFI instruments to mobilize the greatest amount of private financing in transport sub-sectors that do not offer the highest cost-recovery but that have a large potential to mitigate climate change. This is particularly critical consider the limited amount of DFI capital available and the great demand for more climate-friendly infrastructure. Although these instruments may largely rely on guarantee products, they also may involve structured DFI lending or other forms of financial support. In addition, the activity will not be limited to PPP financing. Private finance can be mobilized regardless of the delivery (public or private) or the cost-recovery potential. The key is to make the funding (user revenues, taxes, levies, budget allocation) sufficiently strong to back up a long-term financing.

Approved date2017-05-12
SectorTransport
StatusClosed
RegionGlobal
InstrumentPPIAF