CICA held its Board-Council Meeting in Paris on the 16th of November 2015.
Following the internal matters, roundtables were organized on the 16th and 17th of November focusing on Long-Term Financing of Infrastructure.
Through the different presentations made by specialized experts during these roundtables, CICA aims at pursuing the following objectives:
Better identify the impact of prudential norms on the financing of infrastructure
On one hand better identify factors that explain the withdrawal of commercial banks of the financing of infrastructure projects, in particular due to prudential rules such as Basel III and CRD IV;
On the other hand explain the weak participation of long-term investors in infrastructure projects, notably due to Solvency II regulation.
Explore possible ways to address those concerns and to participate to the improvement of the existing regulation framework
Highlight the desirable and possible changes to the existing rules;
Highlight actions that can be taken by Contractors to contribute to the emergence of favorable conditions to meet investors’ expectations for the creation of an infrastructure assets class. The creation of such a specific class of assets would allow increasing the allocation of assets to the infrastructure sector.
Review the impact on public finances of the creation/rehabilitation of infrastructure by developing efficient tools
Promote research methodologies allowing a better appreciation of the fiscal return of infrastructure projects, with a medium to long term perspective. A relevant appreciation is needed to allow the acceptability of the investment. It would also facilitate the prioritization and planning as well as the definition of a pipeline of projects for the creation and maintenance of resilient infrastructure;
Lobby for the redefinition of the debt/GDP ratio according to the origin of the debt: investment versus social transfer and operating expenses of the State and its territorial and social divisions.
Further explore the methods and procedures to improve the project preparation – concept of “Well Prepared Project” (WPP) to increase security in order to strengthen the attractiveness of infrastructure projects for lenders and investors and to reduce delays and transaction costs. This would allow a less automatic application of the prudential rules.
Have insights from Islamic Finance and Africa 50 Fund
Understand the contribution of Islamic finance to the financing of infrastructure projects in the Middle East and North Africa region and sub-Saharan Africa.
Identify opportunities generated by Africa 50 Fund, created at the initiative of the African Development Bank.