The GIF will provide end-to-end support in project design, preparation, and transaction and financial structuring to ensure viable infrastructure projects are brought to market, with a focus on finance options and structures able to attract a wide range of private investors.
The aim is to demonstrate impact – as the World Bank Group President Jim Yong Kim said in October 2014:
“For the private sector, we know decisions about investing come down to assessments of risk and return. And in setting up this Global Infrastructure Facility, we have listened to and heeded the voices of investors and financiers who have told us the biggest constraint to unlocking investment is the lack of a solid pipeline of well prepared projects, designed with commercial viability and long term financing in mind. “
Infrastructure is a priority for the World Bank Group. Last year it mobilized $24 billion in financing up from $16.7 billion previous year.
The GIF has already had interest from developing countries in the innovative way in which it is structured to draw in new sources of finance – particularly from institutional investors.
Starting with a pilot phase, the GIF will demonstrate what can be achieved. Work has already begun on a pipeline selection process and the GIF is looking at several projects with the potential to transform economies in developing countries.
During the three-year pilot phase activities will include:
- Enabling environment and project definition;
- Project preparation and investment feasibility;
- Transaction support and financial structuring; and
- Financial arranging and credit enhancement.
The Multilateral Banks see building a pipeline of quality – and not just quantity-- infrastructure projects as vital. With that view, selection criteria and processes will be developed with GIF partners, and are expected to take into account the following:
- Development Impact—projects that support the twin goals of ending extreme poverty and boosting shared
prosperity; as evidenced by the ability to estimate impacts on access, affordability, jobs, gender, and
- Alignment—projects that are aligned with a government’s priorities and strategies;
- Complexity—projects that require multiple parties to come together to provide structuring, arranging and financial support, and/or projects which require a blend of financial instruments; and;
- Catalytic Impact—projects that have significant potential to achieve financial viability, leverage public
funds, and attract private sector and/or institutional investors-such as through Public-Private Partnership
(PPP) models, while still meeting governments’ aims to deliver infrastructure.
MEDIA CONTACT: Camille Annette Funnell / +1 (202) 294 4804 / firstname.lastname@example.org