Jade
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Thanks for the link
I won't 100% this won't work but given the nature of Infra projects in developing countries its an investors worse nightmare. The only investors possible to pull off large infra works are State funds (i.e Temasek Holdings, China investment etc) because they have cash up front and no shareholders to answer too.
Nothing against India, if the government is strap for cash it will try all means to pull it off. If someone asked me today to invest in Infra projects in Indonesia I would also balk at the idea of it.
This article from the economist sums it up nicely, unless clearer directions/red tape are evident from the GOI it would be hard to say how things will pan out for the really big stuff.
Infrastructure in India: RIPPP | The Economist
Actually the techniques and risk allocation methods of project finance have really worked well. Forget India, Investors have got good returns even in war raged countries through PPP.
Chad - Cameroon Pipeline project is one. You will find hundreds of such risky projects being financed through PPP.
Chad–Cameroon Petroleum Development and Pipeline Project - Wikipedia, the free encyclopedia
PPP is designed to be used to finance very high risk projects. In fact 20% of world's investments are through PPP.
China perhaps is the only large economy that doesn't use PPP, as everything in China is owned by the government hence enjoy considerable cushion. In countries such as India where more than 80% of the country's wealth is owned by private parties, India doesn't enjoy that cushion hence resort to PPP.