This paper discusses the opportunity to introduce decentralized finance (DeFi) lending into the Public Private Partnership (PPP) market.
The global PPP market is vast and growing steadily, particularly in emerging countries where access to public funds are limited. To give some sense of the size of this market globally, here are some statistics.
PPP encompasses a wide variety of different project structuring solutions to deliver major infrastructure projects in which the public and private sectors collaborate under long term agreements. Examples include toll roads, rail, airport, power and water. A typical project ranges from $200 million upwards into the multiple billions. The PPP term often called the ‘concession period’, is generally between 20 and 30 years. That usually comprises an initial investment and construction period at the outset, which is often 2 to 4 years, depending on the size and complexity of the asset being constructed. It’s followed by an operational period, normally upwards of 15 years. This involves the private sector party operating and maintaining the asset and receiving revenues through either end-user payments (tariffs) or direct government payments.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
