Financing and Risk Mitigation

Core References

Financing Water Supply and Sanitation Investments: Utilizing Risk Mitigation Instruments to Bridge the Financing Gap
World Bank: Water Supply and Sanitation Sector Board Discussion Paper Series, Paper No. 4, January 2005.
Baietti, Aldo, and Peter Raymond

Examines instruments for mitigating risks in water investment. Considers foreign exchange risk, use of guarantees, creating creditworthiness, and hybrid financing methods.

Analysis of Power Projects with Private Participation under Stress
Washington, D.C.: The World Bank, 2005.
Covindassamy, M. Ananda, Daizo Oda, and Yabei Zhang

Examines issues of distress in private participation situations. Concludes that reforms without a strong consensus is a major cause of distress for power projects and that power projects need financial instruments to address macroeconomic instability while maintaining politically sustainable prices.

Mobilizing Private Finance with IBRD/IDA Guarantees to Bridge the Infrastructure Funding Gap
Washington, D.C.: The World Bank, 2007.
Delmon, Jeff

Describes guarantees that the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) use to catalyze private finance for infrastructure. Examines partial risk guarantees (PRGs) and partial credit guarantees (PCGs).

Government Guarantees: Allocating and Valuing Risk in Privately Financed Infrastructure Projects
Washington, D.C.: The World Bank, 2007.
Irwin, Timothy

Reviews history of government guarantees and identifies obstacles to good decisions. Provides a framework for judging when governments should bear risk in an infrastructure project. Explains how guarantees can be valued.

Review of Risk Mitigation Instruments for Infrastructure Financing and Recent Trends and Developments
Washington, D.C.: The World Bank, 2007.
Matsukawa, Tomoko, and Odo Habeck

Provides a guide and reference information for practitioners of infrastructure financing. Covers the different types and nature of risk mitigation instruments currently available for private financiers. Describes recent trends in risk mitigation for developing country infrastructure financing. Summarizes characteristics of providers and their compatibility.

Financing Networks: A Discussion Paper
2006.
Ofwat and Ofgem

Examines impacts of gearing on management incentives, risk, and regulatory discretion. Discusses how regulators might ring fence gearing.

Project Finance: Case Studies
Euromoney Books, 2000.
Davis, Henry

Provides numerous case studies of the finance of infrastructure projects in developing nations.

Case Studies

Financeability
in CRI Regulatory Review – 2006/2007, University of Bath School of Management, pp. 421-444.
Mason, Keith

Energy Stalemate: Independent Power Projects and Power Sector Reform in Ghana
Working Paper, Management Program in Infrastructure Reform & Regulation, University of Cape Town Graduate School of Business, 2008.
Malgas, Isaac

Through the Fire: Independent Power Projects and Power Sector Reform in Côte d’Ivoire
Working Paper, Management Program in Infrastructure Reform & Regulation, University of Cape Town Graduate School of Business, 2008.
Malgas, Isaac, and Katherine Nawaal Gratwick