5.1.  Introduction

As noted earlier in this paper, the availability of a capital markets execution for PPP projects differed widely among national markets prior to the onset of the financial crisis, and the most active market by a wide margin was the United Kingdom. The Eurozone has shown less enthusiasm for PPP bond financing and activity was limited to very few countries. This being the case, the approach to finding a capital markets solution to the current funding shortage will necessarily differ from country to country. In this section, the PPP capital markets picture in two countries is discussed to illustrate the different situation facing authorities wishing to attract capital markets funding. The reader's attention is drawn in particular to the role that inflation risk allocation has played and will continue to play in attracting investors to the PPP sector.