2013 Global PPI Update Released

November 26, 2014

Jonathan Ernst / World Bank Group

Private Participation in Infrastructure Falls by 24 Percent

The World Bank Group’s recently released 2013 Global PPI Update reported several eye-catching developments in private participation in infrastructure, or PPI, in emerging markets. Most significantly, PPI fell by 24 percent to $150 billion as compared to 2012, with deal activity dropping by nearly 29 percent. Brazil and India accounted for most of the decrease, raising questions about whether PPI changes represent a trend or a one-off dip. On the positive side, Turkey saw significant increases in PPI, up to $16.8 billion, making it the second-largest PPI market after Brazil. PPI in Sub-Saharan Africa grew by 8.4 percent to 14.9 billion, the highest for the region since 2008.

PPI is important because private sector resources significantly increase the financing, technology, and managerial expertise available for infrastructure, which is an important component of economic development. Better risk sharing between the public and private sectors also contributes to the positive impact of infrastructure investment.

The note was prepared by the World Bank’s PPP Group in Singapore with support from the Public Private Infrastructure Advisory Facility (PPIAF) and the Government of Singapore. It draws from the PPI project database, which details over 5,000 infrastructure projects in developing countries covering the last three decades. The database is publicly available and is downloadable, allowing detailed analyses of global PPI activity in low and middle income countries.

The PPI Update provides a solid review and analysis of the latest data. It includes details of PPI developments by sector and region, provides an overview of the main investors and lenders, and highlights the biggest deals. It also provides an analysis of current trends in PPI and a ranking of 92 countries by volume.

Read the 2013 Global PPI Update on Scribd, or explore the PPI Database.