Multilateral Banks to Deepen Collaboration with Private Sector to Boost Inclusive, Sustainable Infrastructure

Leaders of the top multilateral development banks (MDBs) have agreed to deepen their collaboration to encourage private sector investment in vital infrastructure needed to support sustainable and inclusive economic growth throughout the world.

Basic infrastructure services like roads, water and sewage lines, and electrical power are scarce in many developing countries. Over one billion people live without electricity, more than 660 million people don't have access to clean drinking water, and one in three people lack access to flushing toilets and sewerage infrastructure. In addition, countries face the urgent need to invest in climate-resilient infrastructure and renewable, efficient energy sources.

With trillions of dollars in capital sitting on the sidelines earning low or even negative returns, deeper engagement with the private sector can create win-win scenarios where investors earn better returns on long-term investments and developing countries get much needed investment and expertise.

In order to fulfill commitments that countries throughout the world made to meet the ambitious Sustainable Development Goals, the MDBs pledged not only to leverage their resources by joining forces to cofinance projects, but also to help generate interest among private sector investors in Public-Private Partnerships (PPPs) and the development of infrastructure as an asset class for institutional investors.

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