Making Infrastructure Rewarding

It is widely acknowledged that adequate infrastructure is necessary to achieve the development goals of Emerging Markets and Developing Economies (EMDE). In spite of this recognition, the majority of EMDEs have inadequate infrastructure stock, often because there has been insufficient investment in infrastructure.

The World Bank Group (WBG) estimates that approximately US$1 trillion is needed per year to meet the infrastructure needs of EMDEs.1 Government in these countries have limited financial resources and will not be able to address these needs by themselves. Therefore, private finance is necessary to close the gap between the demand for infrastructure and the funds available for infrastructure from public sources. However, there are several barriers to investment constraining the amount of private finance available for infrastructure projects.

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