Remedial actions facilitating the entry of new investors in the PPP market

There are three options, worth exploring, to revive the institutional funds market for infrastructure:

■ Facilitate the unwrapped bond market through structural changes in the PPP model

■ Revive the monoline model for wrapped bonds

■ Develop a "debt fund" concept

None of these approaches is in a public procurer's control but would require an impetus from governments or supranational agencies and a confirmed appetite from the financial markets. Each option would require significant research and market testing before a workable model could be defined.

The limitations and advantages of bonds when applied to project finance (such as interest carry, refinancing costs or inter-creditor issues), are well documented and are not repeated below.