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Financing Infrastructure in the Water Sector Expert Group Meeting on Monitoring of Investment and Results in the Asia and the Pacific Bangkok, 22-23 September 2011 Margit Molnar Regional Adviser UNESCAP Macroeconomic Policy and Development Division
Infrastructure capital is particularly important ,[object Object],[object Object],[object Object],[object Object]
And is financed from various sources ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Nevertheless a huge financing gap persists
 ,[object Object]
Is the water sector any different? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Financing of water infrastructure ,[object Object],[object Object],[object Object],[object Object],[object Object]
Financing ( cont .) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Financing ( cont .) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Commercial financing difficult ,[object Object],[object Object],[object Object],[object Object]
Bond premia vs. credit spreads for 5-year term issues/loans from AAA to B- ,[object Object],[object Object],[object Object],Heightened risk aversion reflected in widening spreads at lower ratings
A special type of PPP – revenue bonds Source: Yoshino (2011)
Lack of financing leads to underinvestment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
How to overcome the affordability issue? ,[object Object],[object Object],[object Object],[object Object],[object Object]
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  • 1. Financing Infrastructure in the Water Sector Expert Group Meeting on Monitoring of Investment and Results in the Asia and the Pacific Bangkok, 22-23 September 2011 Margit Molnar Regional Adviser UNESCAP Macroeconomic Policy and Development Division
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  • 11. A special type of PPP – revenue bonds Source: Yoshino (2011)
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