Multi-billion dollar projects are fuelling stronger private sector investment in infrastructure in developing countries, according to a new World Bank report.
The report shows that infrastructure investment in 2017 increased by 24% in comparison to the previous year reflecting US$36.7 billion across 132 projects.
“Private sector investors are committing increased investment to infrastructure projects, and that is a welcome development given the tremendous need for more infrastructure in developing countries,” said head of Infrastructure, PPPs, and Guarantees Group at the World Bank Hub for Infrastructure and Urban Development in Singapore, Cledan Mandri-Perrott.
According to the report, the energy sector drew the most interest, accounting for almost three quarters of total 2017 investment commitments, with the renewables sector continuing to gain strength.
The average size for renewable energy projects is currently US$149 million and 68 of the 82 electricity generation projects are focused on solar and wind power.
Additionally, the report showed that investments in low-income countries had also strengthened, increasing to US$2.1 billion across 15 projects in 10 countries.
Only six low-income countries received private sector investment in infrastructure in 2016.
