Risk Perspectives on Sustainable Finance for Infrastructure Development

By Prasanta Kumar Praharaj

A featured article of our February 2021 edition of PRMIA's Intelligent Risk quarterly newsletter

Infrastructure development is the key determinant of economic growth. Developing countries need to invest $1.0 trillion annually and around 5% of GDP on infrastructure. Notwithstanding the importance, there is sluggishness in the sector as infrastructure projects are characterized by high level of capital investment coupled with a myriad of risks; construction risk, sponsor risk, concessionaire risk, policy risk, financial risk, business risk, operation and maintenance risk, technology risk, socioenvironmental risk, and climate risk are notable. As a result, funding infrastructure takes place on no-recourse or limited recourse basis and the physical and financial structuring happens in such a manner that risks are shared among all the stake holders. 

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Intelligent Risk is PRMIA's quarterly publication, bringing all PRMIA members free access to knowledge and information about risk management for financial institutions as well as current information on PRMIA chapters, committees, academic partners, news and events.
Individual articles from each edition are published under our members only Risk Library resources section. PRMIA is sharing select articles from the February 2021 edition with the public. Get more articles like this by joining PRMIA today.

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