The following article is an excerpt from Private Infrastructure Finance and Investment in Europe,a report commissioned by the European Investment Bank. The entire report with footnotes and references is available at Inderst Advisory and the Social Science Research Network page.
Private capital is provided to infrastructure projects in two main forms: corporate finance (operating or service companies operating in infrastructure sectors) and project finance, a contractual financing arrangement that is particularly important in infrastructure.
This article will not discuss the public provision of capital by central, regional, local and other government institutions. However, the public sector plays key roles in the private provision of capital by setting i