First published in Infrastructure Investor
Traditionally, developed countries such as the UK have led the
way in utilising private investment models to fund public
infrastructure development. However, global investors are now
looking further afield when considering which markets to invest in,
including emerging markets.
There are a number of factors which influence investor decisions
as to where to invest. The sophisticated investor will seek
political and regulatory certainty, financial viability of
government entities, a market where the risks involved are clearly
understood and the availability of a long-term pipeline of
infrastructure projects. Political certainty demands a stable
political system that is supportive of private infrastructure
investment from global investors and which has prudent fiscal and
budgetary discipline.