Knowledge Note

"Learn how developing countries and emerging markets may strategically deploy guarantees to mobilize private financing for their infrastructure needs."

Traditionally, infrastructure is funded by governments through public budgets. However, many governments in emerging markets and developing economies (EMDEs) do not have sufficient public budgets to fund all of their infrastructure needs. Experience has shown that the private sector can bring in needed financing, technology, expertise, and efficiencies for the construction and operation of infrastructure projects, which can create value for money and improve service delivery.

This Overview of a World Bank Group publication provides guidance to government officials in emerging markets and developing economies (EMDEs) on when government guarantees for public-private-partnership (PPP) projects might be desired; how they could be best utilized; the structure and scope of guarantees and guarantee programs; the costs and risks entailed; and how to manage these risks.

This Knowledge Note is an Executive Summary of the World Bank Group publication, entitled 'Government Guarantees for Mobilizing Private Investment in Infrastructure'. To read the full publication, please click here.