Global Conference 2011
Financing Global Infrastructure
Monday, May 2, 2011 / 2:30 pm - 3:40 pm
Many governments around the world launched stimulus packages to spur economic recovery, and infrastructure projects - such as the building of rail networks, roads and power grids - were typically the centerpiece. In China, the Ministry of Transportation doubled its outstanding debt in three years; most proceeds from debt issuance went to high-speed rail projects as part of the economic stimulus package. In Brazil, public-private partnerships have been established to finance infrastructure projects. The Indian government has a $1 trillion infrastructure program that needs funding to succeed. But emerging economies are not the only ones facing funding challenges. With rising government debt, the United States also needs to find a way to leverage capital to fix its aging infrastructure. What role can the public and corporate bond markets, private equity firms and international development agencies play in funding infrastructure projects? What financial instruments can effectively attract private capital to form a successful public-private partnership? Can financial innovations help to bridge the funding gap?