This paper reviews risk-mitigating structures to improve the ratings of debt securities issued by developing-country infrastructure projects, with an emphasis on electric power projects. It reports on the opinions of several important constituencies which were interviewed as part of this study: fixed-income investors, monoline insurers, investment bankers, rating agencies, bilateral and multilateral agencies, and private political risk insurers. Finally, the paper reviews three new approaches for promoting increased access to the capital markets for infrastructure projects: structures to encourage local capital markets financing, new uses of partial risk guarantees, and expanded use of expropriation coverage.

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