Financing trends 2014 - Private sector financing

The total value of projects with private sector participation that reached financial close declined from $8.8bn in 2013 to $5.1bn in 2014. Of this, $2.9bn was financed by the private sector with the remainder financed by development finance institutions.

Two factors contributed to the 2014 decline – the absence of large port investments in Nigeria (reported in 2013) and the postponement until 2015 of the fourth bidding round of South Africa’s Renewable Energy Independent Power Producer Procurement programme, originally scheduled for 2014.

However, the attractiveness of power projects held up, with the energy sector the major recipient of finance for infrastructure projects that closed in 2014. Total investments reaching financial close in the sector grew slightly from $4.5bn in 2013 to $4.8bn in 2014, covering eight power projects. By way of contrast, only one water infrastructure project reached financial close in 2014.

Figure 63: Private sector financing by region, 2014

Figure 65: Total value of projects with private sector participation, 2010 - 2014

Figure 66: Sources of financing of projects with private sector participation, 2014

(The Private Participation in Infrastructure (PPI) project database, a joint product of the World Bank’s Infrastructure Economics and Finance Department and the PPIAF, was used for project identification. However, financial details were sourced, primarily, from project participants’ data. This helped to ensure that data is as accurate possible, and consistent with other infrastructure financing data available to the ICA.)

Subscribe to @ISSUE

Subscribe to our quarterly newsletter to get up-dates from the ICA

Learn More