Project finance investments are a key backbone for a wide range of sustainable and bankable new
infrastructures; being long term investments, they are highly exposed to inflation risk, which in Public Private Partnerships
is mostly borne by the private counterpart and its backing lenders. Prompt monitoring and resilient contractual design ease
inflation risk detection, management and mitigation, together with proper and flexible financial modelling, alleviating its
potentially d isrupting impact, especially if unpredictable or chronically enduring.