Global private infra investments remain steady at $111.6 billion

Global private infrastructure investments in 2015 mostly remained steady at $111.6 billion when compared with that of the previous year, new data from the World Bank Group’s Private Participation in Infrastructure Database revealed recently. 

According to the data, solar energy investments climbed 72 percent higher than the last five-year average, while renewables attracted nearly two-thirds of investments with private participation.

The data showed that Turkey raised the bar in 2015 with the financial closure of seven projects for a record $44.7 billion, absorbing 40 percent of global investment with two megadeals in transport: Istanbul’s $35.6 billion IGA Airport (including a $29.1 billion concession fee to the government) and the $6.4 billion Gebze-Izmir Motorway.

Though on par with the previous year, global private infrastructure investments in 2015 were 10 percent lower than the previous five-year average because of dwindling commitments in China, Brazil, and India. Brazil in particular saw only $4.5 billion in investments, sharply declining from $47.2 billion in 2014 and reversing a trend of growing investments over the last five years. Though these three historical heavyweights amassed 44 percent of all global projects, their combined investment was only 10 percent of the total compared to 54 percent in 2014.

“The data finds that investments in other emerging economies increased rapidly to $99.9 billion, representing a 92 percent year-over-year increase,” said Clive Harris, practice manager of public-private partnerships at the World Bank. “Eleven of these countries committed at least $1 billion in 2015, well above previous years with several countries reemerging from a two-year or more hiatus to include El Salvador, Georgia, Lithuania, Montenegro, Uganda, and Zambia.

“Regionally, private infrastructure investments stepped up in Africa and Europe and Central Asia, but fell behind in East Asia-Pacific, Latin America and the Caribbean, the Middle East and North Africa, and South Asia.” he added.