Last Updated:
24 May 2022

Public Money for Private Infrastructure

Deciding When to Offer Guarantees, OutputBased Subsidies, and Other Fiscal Support Author: Timothy Irwin

This report sets out a framework intended to help governments make better decisions about giving fiscal support for private infrastructure services and provides some tools to facilitate analysis. It contains five possible government goals: (a) internalizing externalities in infrastructure markets, (b) overcoming failures in markets for financing infrastructure, (c) mitigating political-and-regulatory risks, (d) circumventing political constraints on prices or profits, and (e) redistributing resources to the poor via infrastructure.