Infrastructure Investment Policy Blueprint

The report addresses a global infrastructure investment shortfall of at least US$ 1 trillion per year, noting a mismatch where private capital is available but 'bankable' projects are scarce. It argues that governments can attract this capital by establishing credible project pipelines, reducing renegotiation risk through independent regulation, and streamlining procurement and permitting processes. The blueprint emphasizes the need for a strong investor value proposition, which includes benchmarking risk-adjusted returns and implementing fair risk-allocation methodologies for financing and demand risks. It also highlights the role of Multilateral Development Banks (MDBs) in mitigating political risk and the potential for 'brownfield capital recycling' to fund new greenfield projects.

• There is a significant global investment gap in infrastructure, with an estimated shortfall of at least US$ 1 trillion per year.
• A contradiction exists in the market where there is a surplus of private capital, yet investors struggle to find infrastructure opportunities that are competitive on a risk-adjusted return basis.
• Long-term institutional investors, such as pension funds and insurance companies, represent the largest source of untapped finance, though many currently fall below their target allocations for infrastructure.
• Regulatory changes, specifically Basel III, are increasing capital charges for long-term infrastructure loans, leading commercial banks to reduce lending and shift toward shorter loan maturities.
• Renegotiation risk, often manifesting as 'creeping expropriations' through small regulatory changes, is a primary concern for investors and can lead to higher required rates of return.
• Governments can mitigate investor risk by establishing independent regulatory frameworks, using legislative hurdles to prevent unilateral contract changes, or implementing profit-sharing and equity-retention mechanisms.
• The creation of a dedicated Public-Private Partnership (PPP) Unit can improve procurement efficiency by standardizing documentation and processes, reducing the time and cost of bidding.
• Appointing a lead agency to coordinate regulatory and environmental permitting can significantly reduce project delays and increase financial returns.
• Brownfield 'capital recycling'—selling or leasing existing assets to fund new greenfield projects—is an effective strategy to attract investors who prefer lower-risk assets while meeting government needs for new infrastructure.
• Multilateral Development Banks (MDBs) provide essential risk mitigation through political risk insurance and act as 'honest brokers' to coordinate complex project governance.

APA

World Economic Forum (2014). Infrastructure Investment Policy Blueprint. http://www3.weforum.org/docs/WEF_II_InfrastructureInvestmentPolicyBlueprint_Report_2014.pdf

Chicago

World Economic Forum. Infrastructure Investment Policy Blueprint. 2014. http://www3.weforum.org/docs/WEF_II_InfrastructureInvestmentPolicyBlueprint_Report_2014.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Infrastructure Investment Policy Blueprint |date=February 2014 |url=http://www3.weforum.org/docs/WEF_II_InfrastructureInvestmentPolicyBlueprint_Report_2014.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2014infrastructure, author = {{World Economic Forum}}, title = {{Infrastructure Investment Policy Blueprint}}, institution = {World Economic Forum}, year = {2014}, month = feb, url = {http://www3.weforum.org/docs/WEF_II_InfrastructureInvestmentPolicyBlueprint_Report_2014.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }