There has been much debate about possible solutions to the PPP project funding crisis, mostly involving some form of government action. There is unlikely to be a single solution appropriate for all projects. At a minimum, governments will need to facilitate PPP projects' access to the funding that does remain available. However, larger PPP projects, which stretch or exceed the capacity of the financial markets, may need direct government support for their financing, in the form either of providing finance itself or of guaranteeing private sector finance. Direct government support also has the potential benefit of reducing PPP projects' funding costs.
Measures that governments may need to take are described further below. However, one critical area where direct government support is required for all projects relates to the refinancing risk.