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United Kingdom
Key definition
Infrastructure definition

What does Infrastructure mean? In legal practice, infrastructure describes assets and networks that provide essential or public services and the projects to procure, finance, construct, operate and maintain them. It is a descriptive term rather than a single defined legal concept; sectoral statutes and planning regimes define specific categories for particular purposes (for example, nationally significant infrastructure projects under the Planning Act 2008 in England and Wales; national or major developments in Scotland; regionally significant development in Northern Ireland; and strategic infrastructure development under Ireland’s Planning and Development Acts). Sectors commonly include transport (roads, railways, ports and airports), social infrastructure (schools, hospitals and justice estates),...

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Infrastructure projects: funding sources, risk factors and models (government, equity, bank and multilateral debt, capital markets, ECAs, project finance, PPPs, forward funding)

Practice notes
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Global demand for public Infrastructure is high at a moment when public finances are constrained and banks are less inclined to extend credit, prompting fresh and varied approaches to financing infrastructure development. The following provides a brief outline of the standard funding sources and models used for infrastructure projects. A comprehensive examination of the financial structures and products available for infrastructure funding falls outside the scope of this practice note.

Factors influencing source of funding

The source of finance for a particular infrastructure scheme will turn on:

  • the procuring party or parties—is it a governmental authority, a private firm or a consortium? Do they have a solid track record? Are the parties or their sponsors investment grade?
  • the procurer’s financial position—do they hold sufficient funds or must they raise external finance?
  • the security package—if finance is required, which entities, assets and documents will form part of the lenders’ security package?
  • the project’s location—for example, is it in a developed economy, a developing market or a politically unstable area? Banks may impose country lending limits and may also be...
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Web page updated on 21/05/2026

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