Cement Energy and Environment
While this model may be perhaps passable in developed economies the balance world it may not find any headway. The model could work only as long term prospect of user pay methodologies as in rail, toll roads etc. this is an establ ished route and can progressively used by hiking tariffs but per established norms. 'Asset Monetization' is being propped up as a new way of infra funding but is at its 'nascent' form with Australia being on the forefront. The usage is at experimental level as pilot tries meaning small scale going on in certain developed economies. Future infrastructure investment challenge, will be coming from the attempts in localizing the approach to value capture. The Institutional Debt Markets Take Off There has been over the pasr. year, a significant uptick in the volume and size of institutional debt deals. Future is bright but also dependent on multilateral banks choice of where they use their capital. (See Figure 9) . There is possibility of massive injection of institutional debt in the coming years: • The Asian Infrastructure Investment Bank (AIIB), for example, has stated that it will use some of its US$1 00 billion to catalyze private sector investment. • • The EU's Juncker Plan aims to turn EUR21 billion of public money into EUR315 billion of private investments. Some others are now shifting their models in the same direction. At the end of day, the real question that matters is whether the multilaterals will be able to take the right steps at the right time to truly unlock private investment. If they are able to get it right, LEVERAGING the world should enjoy the massive benefits that will flow from a more-liquid debt market. Leve– raging of different strategies is the way ahead. (See Figure 9) But the long-term bumper crop is what is the focus should be trained on; "the goal here is not to invest billions over the next 2 years but rather to catalyze some US$70 trillion in investment over the next 30 years". Back to China and India All said, a story if it is of development, emerging economies, upliftment, and many similar metaphors, the common pair is China and India! It is being said that over the past year, it has becoming increasingly clear that China and India are successfully making the leap from 'emerging' markets to 'developed' markets. Some have put it more plainly that India though is rising but the pace is not very pleasing. Maybe this is closer to reality. There is no doubt that China is intending to opening its domestic market to international investors and has published a pipeline of more than 2,000 public-private partnership (PPP) projects. Also inter-nationally, China is shifting from bilateral (government-to government) contracts to entering open market competitive tenders. Chinese companies are becoming more acquisitive as they seek to compete in international markets. The best part is that Chinese technology is gaining grip and meeting quality levels. The Asian Infrastructure Investment Bank and the "One Belt, One Road" project have the potential to be game changers. India, now with the fresh election promises is also perceived as having possibility to continue to grow well and do good in terms of the global infrastructure market. And here in comes the "Yet while India is the fastest growing '·'·· ~Ad~OQ PDO!ilg. , Debt-Based.' Right- · , "... ·· Risk> Resuiis." Based'. :L~ ~. :~:~~Jii~ ;.. ·. ;"/ :~ ·. <r.:~wi!l~. ,.,;. , .::., {~_anao~e~ \. . . · ···Fj~afl.Cino \.:::.. ._~: large economy in the world, it is also 142nd in terms of 'ease of doing business'". God bless! All the goodies are said and 'browny points' given to India but never without a "Rider". And what the local government and leaders need to work hard on is, to ensure the country's reports are just without these 'encouraging' riders! Co-lnvestnent Plall0ffi1S I 6oOO Issuance e Jendtld Hnarce I PPPs Advance M111ket Pooled IA!hlctes Btidge Financing Otrrvallvts/ Swaps Comm~mMIS Equity 111vt!Srncnt O~l Conver~co !iuaranlees /IIISIJ~¥~te Bw downs IMstment Climate f Atgula~ry Frontloading Indexed 1 F\v lormance Cond~lollal cash Advlco and PoHcyLending IslamiC Finance ~~llOnds ltanster lDCal Currency and Oomes~c line ol Credit Loc11 Currency 0~ Finaoco Payment lOr RBS~Jils Capltal/6ond M.not6ulld~ Miu~Ol Data /Bench~ /Pill Mochanlsms Naw 'Global' Tales. Sollclaflly t.ono·T!rm Finance Pll)jed Ptoparation Faell~les Porlonnarn:e based Levies Funding P\lblt-PMte OlalOOUt l~sk Sharing Vdlldes Priles/ ~~~ortnllloll !'Jell~ dOll ComlleUOM J:1quro 9From !M100s to TnU10M TronsformiNJ Owclo~rr"'"' ~rnanco Olob.1lty. countnoswrlt lood, and coUrctNcly the M06'> & IM~ wU ~ ccntrl)lto tho glob.1l dt'VI'I.Op'Yirottoolk't 36
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