Investment by the public sector in a comprehensive program of prioritized opportunities can attract more private capital.
Those countries that have been most successful in attracting finance have established programs of prioritized investment opportunities with a number of features, including clear political support, a proper legal and regulatory structure, a procurement framework that can be understood by both procurers and bidders, and a credible project timetable. These country programs are more than just marketing - they eliminate key frictions such as long project lead times and unclear political risk which directly impact the viability of the business case for investment.
Building transactional capacity within government bodies underpins all successful procurement programs.
Even countries with years of experience in completing complex public-private deals may find it difficult to sustain the necessary commercial expertise and ensure that they get value for money. The recent economic turmoil has exacerbated the situation, highlighting the need to be able to react quickly to changes in the financial environment. To tackle this challenge it is important to maintain dedicated procurement teams that are well trained with career paths that will encourage them to stay. The development of national and regional networks of practitioners to share knowledge and experience can be important as well. Investing in these transactional capabilities can be as important as investing in the infrastructure assets themselves.
Multilateral banks continue to move beyond their role as direct funders of infrastructure to help build transactional capacity and provide risk mitigation.
Adequate finance is only one of the conditions that must be met for an infrastructure project to succeed. Essential skills and improved conditions in the country's market environment are also crucial, and multilateral banks are able to support transactions by providing political cover and resources, such as the joint initiative Multilateral Public-Private Partnership in Infrastructure Capacity Development (MP3IC) program, to assist in these areas. It is important for countries to become aware of and know how to utilize these resources most effectively.
Public and private parties will both benefit from collaboration in land procurement and valuation.
The procurement and valuation of land for new infrastructure is always a controversial subject. The issue is not so much who has the power to assemble land-this usually rests with public parties-but rather who pays for and receives the benefit of the change in land value
resulting from the infrastructure development, how the change is calculated, and at what point in the transaction timetable it is calculated. Several instances exist in which land has been effectively monetized to pay for infrastructure. One such example is the supplement the Greater London Authority will levy to contribute to the funding of a new train link across Britain's capital.