Assessing the Feasibility of Using Infrastructure Bonds to Finance Public Infrastructure. A Case of Zambia

Bachelor Thesis from the year 2018 in the subject Economics - Other, grade: 1.0, Copperbelt University, course: Construction Management, language: English, abstract: The aim of this study stands out to be a solution to the current trends of poor financial backing by the government on public funded project. This aim was achieved through delving into the concept of Infrastructure bonds as well as the requirement for applying for this type of bond. The use of a detailed literature review and a questionnaire survey as well as interviews, provided the results of this study by highlighting the fact that Infrastructure bonds are not feasible to finance public Infrastructure in Zambia at the moment. This study underscored the financial gap that exists at present in Zambians Public Sector with reference to Infrastructure Development. Additionally, the key requirement for applying for Infrastructure bonds were a scrutiny of, namely: Structural features; Macro-economic factors; Public finance; External finance; Contractual framework; and Risk management techniques. The study also identified countries that have accessed these bonds and this was achieved through the use of case studies such as those of Kenya in Africa and Belgium and Spain in Europe. The study identified that although, Infrastructure bonds are not feasible at the moment, the most favorable bonds to be used if all the necessary logistics are put in place are the Informed bonds. Therefore, these bonds are a remedy to Zambias current financial challenges with regards to Public Infrastructure as well as to contain the unethical practices prevalent on public funded projects.