The Evolution Of Infrastructure Financing In Europe:An Empirical Study On Public-Private Partnership

Infrastructures are the backbone of modern economy as they are a key factor in fuelling economic growth and development. However, due to the current economic environment characterised by tight fiscal constraints and reduced public spending, new resources must be found in order to bridge the existing infrastructure gap in Europe. This work explores alternative sources of financing for government spending and special attention will be placed on a particular method of project financing technique called public-private partnership. Through the creation of a comprehensive database, this thesis investigates the evolutionary pattern of infrastructure financing, the main differences between pre-crisis and post-crisis deals and the main determinants of the higher cost of using private finance in delivering infrastructure projects. Finally, on the footprint of the British experience, other European countries need to put in place corrective actions in order to restore confidence in the project financing market and stimulate private capital investments in infrastructure financing.