The Global Infrastructure Facility (GIF) is a global, open platform that facilitates the preparation and structuring of complex infrastructure public private partnerships (PPPs) to enable mobilization of private sector and institutional investor capital. The GIF platform coordinates and integrates the efforts of Multilateral Development Banks (MDBs), private sector investors and financiers, and governments interested in infrastructure investment in Emerging Markets and Developing Economies (EMDEs).This approach enables collaboration and collective action on complex projects that no single institution could achieve alone. GIF’s engagement begins with upstream support on market structure and project identification and appraisal, continues through transaction preparation, and integrates financial structuring and credit enhancement. The GIF operates according to the following core principles:
- Providing public goods: Focusing on enabling investment in core infrastructure, particularly those infrastructure projects that are climate smart or trade-enabling.
- Mobilizing the private sector: Concentrating on financing and implementation modalities that draw together the comparative advantages of the public and private sectors to expand investment and improve infrastructure services.
- Achieving value for money: Selecting viable projects that are expected to achieve value for money for recipient country government(s) and service users; then, through sound project appraisal, design, structuring and procurement, helping ensure that value for money is achieved in practice.
- Promoting sustainability and inclusiveness: Ensuring that projects adhere to best practice standards for social and environmental responsibility.
- Collaborating for best results: Mobilizing partners’ technical and financial resources in an innovative and flexible way to achieve greater leverage and address the complex infrastructure financing challenges that are beyond the resources of any individual partner.
- Augmenting partners’ capacity: Complementing individual partner efforts by supplementing existing resources.
By contributing to the stock of high quality and well-structured infrastructure projects, the GIF can be expected to help develop EMDE infrastructure as an asset class attractive to the full range of private investors seeking diversification into long-term assets in faster growing economies. Until now, these investors have been presented with limited infrastructure investment opportunities that meet their risk tolerance and investment profiles.