This thesis is a study of the development of long-term infrastructure projects in the emerging economies. The essay addresses the emerging economies’ particular attraction to project finance to bring in much needed foreign investment for implementing infrastructure projects instead of obtaining loans, grants, and assistance from international institutions and wealthy donor countries. While the investors have found new opportunities to invest in the emerging economies, it is not without its own set of risks. To assist both the host nations and the investors, bilateral institutions as well as multilateral institutions provide risk insurance for long-term infrastructure projects. These institutions not only provide insurance but also foster and encourage investment by creating favorable conditions without infringing on the host nation’s sovereign rights.