Wahba Institute for Strategic Competition - Unleashing Opportunity by Unlocking Private Investment in
3 November 2023
Wahba Institute for Strategic Competition Unleashing Opportunity by Unlocking Private Investment in International Infrastructure The Wilson Center’s Wahba Institute for Strategic Competition (WISC) launched a study group comprising leaders in the financial sector who explored how to close the multi-trillion-dollar infrastructure funding gap in emerging markets and developing economies (EMDE). [...] The study group offers the following recommendations to bolster global opportunities, strengthen the rule of law, and expand American exports to advance US national security and foreign policy objectives. [...] First-loss tranches and credit enhancements or liquidity lines to limit risks related to the level of toll-paying traffic on a transportation project or the solvency of the entity contracting to consume energy from an energy project can activate greater private participation.* Including products and services from allied countries in Export-Import Bank country-of-origin requirements would better po. [...] Once an MDB/DFI originates a loan, it remains the lender of record, retaining a portion (the A Loan) and selling participations in the remainder to investors. [...] MDB/DFIs bundling loans into portfolios and then selling participation in the portfolio to investors allows investors to diversify risk.