Infrastructure takes a hit

So says the Public-Private Infrastructure Advisory Facility, which just released a note based on new data on private infrastructure projects in developing countries:

From Aug to Nov 2008, 31 PPI [public private infrastructure] projects reached financial closure involving investment commitments...for US$17.2 billion in 21 developing countries...Such [a] level of investment in new projects represents a decline of about 40% compared with the level in the same period in 2007.

So far, though, the data suggest the impact is similar to the experiences in Asia in 1997-98. Even worse is yet to come - that is, if the financial markets don't revive sometime soon:

There is a growing pipeline of PPI projects which are trying to raise funds or will do so in the next six to twelve months and could be affected if financial markets do not recover by then. Around 44 projects involving investment of US$34.7 billion, which were not able to secure financing by Nov 2008, are expected to continue looking for finance...Competition to attract financing will increase among projects as a growing number of them attempt to raise financing.