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A major challenge for foreign lenders in financing public private partnerships (PPP) infrastructure projects in an emerging market (EM) is the bankability of country-related risks. Despite existing studies on country risks in international project financing, perspectives of foreign lenders on bankability of country-specific risks in an EM is yet to be explored. Hence, using a mixed methodology approach, three private finance initiatives/PPP projects in Sub Saharan Africa (Nigeria) were used to investigate political risk, sponsor, concession and legal risks in PPP loan applications. The paper aims to discuss these issues.

The study adopted mixed methodological approach comprising focus group discussions and analysis of loan documents obtained from foreign project lenders, in addition to the questionnaire survey distributed to local and international project financiers with experiences in PPPs within Nigeria.

Results identified seven topmost bankability criteria for evaluating country-related risks (political risk, sponsor, concession and legal risks) in EM PPPs. In addition, a “Risk and Bankability Framework Model” was developed from the study presenting critical parameters for gaining foreign funding approval for EM’s PPP loan applications.

Since the study only explored bankability of PPPs in Sub Saharan Africa with the exclusion of other geographical regions, the proposed framework model should be taken in context of EMs as a mind-map for foreign lenders and local private investors seeking to finance PPPs in an EM.

Results from the study represent critical parameters for winning foreign loan approval for PPP infrastructure projects within an EM context.

Study proposed “Risk and Bankability Framework Model” relevant for evaluating PPP loan applications at the pre-approval stage for EM PPPs.