Infrastructure deficit is a major growth constraint in developing countries. Whilst infrastructure was not included in the United Nations 2000 Millennium Declaration or the Millennium Development Goals (MDGs), there is now widespread belief that most of the goals will not be reached if the infrastructure deficit is not bridged.

This Background Note examines various infrastructure financing modalities, which together could help to bridge the infrastructure gap as an indispensable means to achieving the MDGs. It covers traditional sources of finance, new actors and new trends and poses questions to advance the thinking on new sources of infrastructure finance.