Business, Management and Accounting
8 years ago

Interest-Free Financing Revolutionizes Infrastructure Projects, Boosts Economic Growth in Developing Nations

1 view
Transportation Frontiers for the Next Millennium: 69th Annual Meeting of the Institute of Transportation EngineersInstitute of Transportation Engineers (ITE)
AN APPLICATION OF INTEREST-FREE FINANCING TO BOT PROJECTS
M Mursaleen, Tatsuro Kuroda

Paper Summary

The article discusses how interest-free financing can improve infrastructure projects like highways. Traditional fixed-interest borrowing can lead to financial problems for project operators, but interest-free financing can share risks equally among all involved parties. This approach can help ensure the success of Build, Operate, Transfer (BOT) projects, especially in developing countries. By using simple simulations, the article shows how this financing structure can lead to better outcomes for infrastructure projects.

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