Frank Jiang,
Private Participation in Infrastructure Investment: An Analysis of Project Consortium

Private Participation in Infrastructure Investment: An Analysis of Project Consortium

Principal Investigator: Frank Jiang, International Business
Funder: SSHRC Insight

While most countries are facing the pressing need to substantially increase investment in infrastructure to meet social and economic needs, most governments recognize that they cannot meet the financial need for infrastructure investment through tax revenues or aid alone, and that greater participation by private investors in infrastructure sector is necessary. The development of an infrastructure project is often led by an investment consortium, also called special investment vehicle (SPV), that consists of domestic and international private investors (also called sponsors). However, in-depth analysis of investor, investor consortium or project attributes is lacking. Hence, our understanding of organizational dynamics underlying the development of individual infrastructure investment projects is limited. In this study, Dr. Jiang will focus on the characteristics and performance of investment consortia, specifically exploring a consortium’s organizational attributes such as inter-sponsor diversity, sponsors’ experience, and the distinct roles of corporate and financial sponsors. The results of the research will be of particular interest to many Canadian and international firms engaged in this growing sector, as well as policy researchers focusing on this phenomenon.