2019 Volume 75 Issue 2 Pages I_132-I_149
While it is widely recognized that financial institutions, who provide non-recourse project financing for PPP projects, do play important roles in effectively scrutinizing the project bankability and provide financial disciplines to project developers in the implementation of those projects, such functions did not work in India. In general, they do not necessarily work well, depending upon the quality of banks’ appraisal capacility for PPPs, the relationship between banks and sponsors and the financial regulatory regime in host countries. This implies that governments need to align the policies for infrastructure development and PPPs with prudent financial sector policies so that they can design and implement PPP projects with feasibility and bankability.
