Full Title: 2024 PPIAF Annual Report
Author(s): Public-Private Infrastructure Advisory Facility
Publisher(s): Public-Private Infrastructure Advisory Facility
Publication Date: March 19, 2025
Full Text: Download Resource
Description (excerpt):
Historically, private sector investment has been a vital source of infrastructure funding. Yet, while there are signs of recovery, private investment in infrastructure for low- and middle-income countries has not returned to pre-pandemic levels. Notably, these investments saw a 5% decline in 2023, totaling $86 billion. Uncertainty — driven in part by unclear regulations — contributes to these limited investment levels.
Clear, well-established rules make it easier and less risky for private investors to participate in infrastructure projects. Data bear this out, showing a strong correlation between PPP regulatory reforms and investment levels over the last three decades. Countries that implement significant reforms to their PPP frameworks received, on average, an additional $488 million in annual investments in infrastructure. This additional funding could be transformative, financing projects such as 83 kilometers of bus rapid transit, 570 megawatts of solar power, or 500 kilometers of four-lane roads.
The Public-Private Infrastructure Advisory Facility (PPIAF) plays a vital role in this equation. It expands access to resilient, affordable, and inclusive infrastructure services by improving the conditions that attract investment in sustainable infrastructure in emerging markets and developing economies (EMDEs).