Private Capital: Developing Project Financing Capacity Beyond The DFIs

The greater fiscal constraints facing the world's development banks are opening an opportunity for a role for the private sector in infrastructure project finance.

The current global economic climate is leading to in an increase in opportunities for private finance. There are, however, significant challenges when forming more rounded syndicates for projects in global markets, particularly in those deals that are structured without any development finance institution (DFI) partners. The absence of development banks often creates questions about the embedded political risk of projects that aren't backed by the development banks that are traditionally seen as important in validating projects in various jurisdictions.