The infrastructure finance markets across the globe are struggling with the same issue that is affecting individuals, companies and even governments: illiquid and expensive debt markets.
The key government objective of any intervention is likely to be to achieve certainty of delivery of key public services and on a value for money basis.
If governments take the decision to support projects, they face several options. These options have difference implications and risks for both the tax payer, and the private partner.
This publication looks at six support mechanisms available to government: Capital grants and subsidies; Government as co-lender; Government as Guarantor; Government as guaranteed lender; ECAs and multilaterals; and Refinancing support.