Developing Nations Gain Lifeline for Coastal Infrastructure Through Foreign Financing
Foreign investments in developing countries are decreasing, but the need for funding in coastal areas is growing due to over-population, pollution, and climate change. Project financing, where a separate company manages finances, is a good way to fund coastal infrastructure. The main financiers are lenders and sponsors who invest based on future cash flows. International financing sources include bilateral institutes, multilateral organizations, and private investors. Multilateral and bilateral institutes focus on development goals and economic feasibility, while private investors prioritize high returns compared to risks. Environmental sustainability and country risk are also important factors. Examples like the Cartagena Tidal inlet project in Colombia and the Maputo Port concession in Mozambique show how financing decisions are made based on various criteria.