ASi" kUCTURE FlOR DEVELOPMENT

1993, Drtze and Stern 1987, Goldstein 1993, Jack risk sharing in project finance are in IFC 1993 and
1993, Little and Mirrlees 1990, the Meier and Mu- Pyle 1994. Material on new projects is taken from
nasinghe background -paper, Redwood 1993, Rui- various issues of the trade journals Putblic Works Fitenbeek
and Cartier 1993, Squire 1990, and the .nandng and Latin Firnace. Information on private
Ruitenbeek background paper.
tansport projects is based on-G6mez-lbafiez and
Box 4.1 is based on materiaI provided by Andrea Meyer 1993. Coverage of country risk, and espe-
Silverman. Box 4.2 was provided by Vijay Jagan- cialy the role of export credit agencies in insunng
nathan and Albert Wright Box 43 was. partially against such risks, is described in the Zhu backdirafted
by John Riverson (on Ethiopia) and draws . ground paper.
on material from Aitken, Cromwell, and Wishart Banks for municipal infrastructure in developing
1991 (on Nepal). Box 4. is based on the Naidu and countries are described in Davey 1988 as well as in
Lee background paper. The Ruitenbeek background personal communications from Sergio Contreras
paper is the source for Box. 4.5. Box 4.6 draws on and Myrna'Alexander. The case study on FEC in
Bryceson and Howe 1993, Pankaj 1991, and von Morocco is from Linares 1993. The financng of con-
Braun 1988. Ian Heggie, John Roome, and Joel tractors is discussed in Kirmani 1988. Description of
Maweni provided. material for Box 4.7. Box 4.8 the new infrastructure funds was provided through
draws on intenal reports of the World Bank's Oper- personal communications by Per Ljung (Pakistan)
ations and Evaluations Department, the Operations and Krishna Challa (Jamaica).
Policy Department, and a review of the Bank'spro The links between privatization and capitalject
portfolio. Box 4.9 is taken from the Meier and market development are described in a background
Munasinghe background paper. Fmally, Box 410 is note prepared by Joyita Mukheree Municpal bond
based on internal World Bank reports.
markets are discussed in US. Municipal Securities-
Rulemaking Board 1993, Shiling 1992, and US. Se
ChapterS
curities and Exchange Commiission 1993. Mesa-
Lago 1991 and VitLas and Skullv 1991 descrbe the
This chapter draws on academic sources; back- evolution of contractual savings institutions in deground
papers; jourmal publications; documents veloping countriesfrom
the IFC, the IMF, the OECD, the US govern- The source for Box 5.1 and Box 5.8 is Ashoka
ment, and the World Bank -personal communica- Mody. The material for Box 52 and for Box 5.4 is
tions and conmments; and expert consultations both from the International Finance Corporation backwithin
and outside the World Bank.
ground paper. Box 5.3 is from the Eichengreen back-
The discussion of the theory that governments ground paper. The sources for Box 5.5 are Miceli
might be able to raise financing more cheaply than 1991 and Williams 1993. Oks 1993 is the resource for
private investors-but that these gains also need to Box 5-6. The material for Box 5.7 is from IJSAID
be balanced against greater efficiency of provision 1993: The source for Box 5.9 is Carzon 1992. Figure
under private ownership-is from Kay 1993. Lane 5.6 was compiled by Ashoka Mody.
1992 is the source for the fact that govermments face Valuable contributions to this chapter came from
a rising cost of finance and also potential liquidity many sources, including Myrna Alexander, Mark
problems if excessive debt is accumulated. The dis- Augenblick, Anand Chandavarkar, Stijn Claessens,
cussion of tying of aid is based on OECD 1992 and AsIi Demirguc-Kunt, David Haug, John Giraudo,
other documents of the Development Assistance. George Kappaz, Sunita Kikeri, Trmothy Lane, Ken-
Committee of the OECD, as well as on comments neth Lay, Julio Linares, Laurie Mahon, Subodh
from Fabio Ballerin.
Mathur, Barbara Opper, Robert Palacios, Thomas
Projections of infrastructire investments in Asia Pyle, William Reinhardt, Jean-Franiois Rischard,
are from CS First Boston 1993. The IFC background Hari Sankaran, Anita Schwarz, Mark Segal, Claude
paper is the source for estimates of IFC's infrastruc- Sorel, James Stein, Martin Stewart-Smith, Jane
ture lending. General descriptions of trends in pri- Walker, Al Watkins, and Ning Zhu.
vate international capital flows, and especially the
shift in foreign direct investments toward service Chapter6
provision, are described in World Bank 1993i and
IMF 1993a.
This chapter draws upon the analysis presented in
General principles of project financing may be earlier chapters and the bibliographic references
found in Nevitt 1989. Discussions of case studies of used therein. Additional references are noted here
129