Financing Infrastructure

Infrastructure's capital intensity poses financing challenges:

Traditional Public Investment

Historical state-led development: - Direct budget funding for strategic projects - Public enterprises (SNCF, EDF) investing - Local authority infrastructure spending - EU structural funds supporting regional development

Public-Private Partnerships

PPPs increasingly common but controversial: - Autoroute concessions generating steady returns - Hospital construction and operation contracts - Broadband network deployment partnerships - Risk transfer and efficiency gains versus long-term costs

European Investment

EU programs support infrastructure: - Connecting Europe Facility funding transport - European Investment Bank loans - Green Deal infrastructure investments - Recovery fund post-COVID stimulus

Private Capital

Infrastructure attracts institutional investors: - Pension funds seeking stable returns - Infrastructure funds buying airports, ports - Energy transition creating investment opportunities - Regulatory frameworks crucial for investment certainty

Michel Dupont manages a €5 billion infrastructure fund:

"French infrastructure offers stable, inflation-linked returns ideal for pension funds. But we need clear, long-term regulatory frameworks. Political uncertainty is our biggest risk."