1/5  BIS central bankers' speeches  These characteristics also make it more difficult to match investment demand and financing supply: Firstly, infrastructure projects are often complex and involve a large number of parties. Infrastructure often comprises natural monopolies such as highways or water supply, and hence governments want to retain the ultimate control to prevent an abuse of monopoly power.
This requires complex legal arrangements to ensure proper distribution of payoffs and risk-sharing to align the incentives of all parties involved. Secondly, infrastructure projects are long term and are therefore subject to various risks including those due to changes in policies, delays in clearances, etc.