India recorded a 10-year low in investments in public-private sector in the year 2015, adding to contraction that pulled down the global investment to below its five-year average of USD 124.1 billion, the World Bank has said.
In its latest annual report, the World Bank said global investment in 2015 decreased to USD 111.6 billion, below the five-year average of USD 124.1 billion from 2010 to 2014. "This contraction resulted from lower investments in Brazil, China and India," the Bank said on Monday in its latest report on Private Participation in Infrastructure Database, Indian news agency (PTI) reported. "India recorded a 10-year low in investments, as only six road projects usually a rich source of PPI over the past 10 years reached financial closure," the World Bank said.
In South Asia, there were 43 deals for a combined total of USD 5.6 billion that closed in the region, representing 5% of the total investment a decline of 82% from the five-year average of USD 30.5 billion. "Consistent with historical trends, India generated a majority of the projects (36 out of 43); Pakistan had four; Nepal, two; and Bangladesh, one. Notably, 26 of the 36 projects in India, amounting to USD 2.0 billion, targeted renewable energy, while all of Pakistan's projects, totaling USD 749.9 million, solely focused on renewables," the Bank said.
Solar energy investments climbed 72% higher than the last five year average, while renewables attracted nearly two-thirds of investments with private participation, it said. Global private infrastructure investment in 2015 mostly remained steady at USD 111.6 billion when compared to the previous year, it said.
According to the World Bank, global private infrastructure investment in 2015, though on par with the previous year, was 10% lower than the previous five-year average because of dwindling commitments in China, Brazil, and India. "The data finds that investments in other emerging economies increased rapidly to USD 99.9 billion, representing a 92% year-over-year increase," said Clive Harris, Practice Manager, Public-Private Partnerships, World Bank Group.