Paving the way

The market trends and key factors associated with successfully involving private finance highlighted in the report include: Countries that have been successful in tapping private finance markets have: 1) Created political, legal and economic environments conducive to investment; 2) Established ongoing programmes of opportunities; 3) Instituted contractual and regulatory frameworks to address any issues effectively and fairly; 4) Provided forums for stakeholders to share experiences; 5) Involved the public at all stages. The costs and terms of commercial debt have changed significantly as a result of the economic crisis; reinvigorating the capital markets as a source of finance for infrastructure is difficult but of critical importance in the long term. There will be a move to more specialized infrastructure funds to provide investors with a better alignment of risk to reward. Investors will also place greater value on fund managers with experience in ongoing infrastructure asset management. Retail finance participation in infrastructure funds is likely to grow, but it requires a clear articulation of the value proposition and related challenges. Not all pension funds are the same a