The use of subsidies by Development Finance Institutions in the infrastructure sector

Working and discussion papers
November 2007
Dirk Willem te Velde and Michael Warner

This paper examines the nature and extent of subsidisation to private sector infrastructure in developing countries. It seeks to provide a better understanding of the types and sources of DFI funding; it suggests that there may be a lack of risk taking by DFIs relative to their high liquidity; and last, but not least, it argues that there is a lack of transparency in DFI operations generally and in the use of technical assistance specifically.

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