10 April 2017

MDB Internal Incentives for Crowding-in Private Investment in Infrastructure

Written by Global Infrastructure Hub
10 April 2017

In a meeting held in Chengdu, the G20 Finance Ministers and Central Bank Governors asked the Global Infrastructure Hub (GI Hub) to “work with the MDBs to assess internal incentives with regard to crowding-in private finance. After consultations with the MDBs, the GI HUB has prepared this Report, setting out its analysis, findings and recommendations.

A key mechanism for closing the infrastructure gap is for the MDBs to crowd-in the growing pools of capital available for private investment in infrastructure – in all situations where it is appropriate to do so. MDBs are uniquely placed to undertake this crowding-in, by shifting emphasis to capital facilitation, through the use of guarantees and other instruments, rather than relying primarily on capital provision.

Subscribe to newsletter