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Renewables, solar, and large size projects trending in new data on private participation in infrastructure

Clive Harris's picture



Translations available in Chinese and Spanish.

Many of you are already familiar with the PPP (Public-Private Partnerships) Group’s Private Participation in Infrastructure (PPI) Database. As a reminder for those who aren’t, the PPI Database is a comprehensive resource of over 8,000 projects with private participation across 139 low- and middle-income economies from the period of 1990-2015, in the water, energy, transport and telecoms sectors.

We recently released the 2015 full year data showing that global private infrastructure investment remains steady when compared to the previous year (US$111.6 billion compared with US$111.7 the previous year), largely due to a couple of mega-deals in Turkey (including Istanbul’s $35.6 billion IGA Airport (which includes a $29.1 billion concession fee to the government). When compared to the previous five-year average, however, global private infrastructure investment in 2015 was 10 percent lower, mainly due to dwindling commitments in China, Brazil, and India. Brazil in particular saw only $4.5 billion in investments, sharply declining from $47.2 billion in 2014 and reversing a trend of growing investments over the last five years.

Public-private investment to close the infrastructure gap

Joaquim Levy's picture

TransMilenio buses near the Simon Bolivar station in Bogotá, Colombia. © Dominic Chavez/World Bank

In a world of slow growth and very low interest rates in most major economies, there is increasing interest in infrastructure development. Building quality infrastructure helps spur economic activity and jobs in the short term and expand countries’ capacity and potential growth in the medium term. It also contributes to higher confidence levels — a key ingredient to macroeconomic stability.

Today, the private sector still provides only a small share of the total investment in infrastructure for emerging markets, despite the importance of private operators in many countries, especially where there are strong fiscal constraints to financing public investment.

How can we improve the lives of Africa's displaced populations?

Ede Ijjasz-Vasquez's picture
Forced displacement is a global crisis that requires urgent humanitarian action. But as displacement tends to last many years – with long-term impacts on the lives of both displaced and host communities, it’s also a serious development challenge.
 
In Africa, which hosts 25% of all forcibly displaced people, some countries have been home for large refugee populations for over 20 years. To address the development impacts of forced displacement throughout the region, the World Bank has been scaling up assistance with 3 new projects covering 5 African countries: the Democratic Republic of the Congo, Zambia, Djibouti, Ethiopia, and Uganda.
 
In this video, Ede Ijjasz-Vasquez and Jo de Berry explain how the Bank will work with these countries to support host communities while promoting the integration and self-reliance of displaced persons.

If you want to learn more about this topic, we invite you to discover our latest Sustainable Communities podcast.

Change in (flight) plan: Just three months to fix Vanuatu’s runway

Christopher J. De Serio's picture
Port Vila, Vanuatu. Photo credit: Phillip Capper


Overjoyed at the emergency rehabilitation of Bauerfield International Airport, Vanuatu’s gateway for travelers, Linda Kalpoi, the general manager of the Vauatu Tourism Office, was in buoyant spirits as she attended the May 6 ceremony announcing the repair’s completion.
 
Vanuatu yearned for good news. Still recovering from Cyclone Pam’s devastation in March 2015, it was hit by political turmoil after the unprecedented conviction of 14 members of Parliament in October 2015. Then, on January 22, 2016 – the same day Ni-Vanuatu citizens were casting ballots for a snap election – Air New Zealand suspended flights due to safety concerns over the runway condition. Qantas and Virgin Australia followed suit a week later. With only a few airlines still operating, the country lost a sizeable chunk of international tourists. 
 
Airport planning in Vanuatu has long been fraught with differing opinions and priorities. Multiple governments with conflicting visions for developing international air transport, as well frequent changes to the staff and leadership of Airports Vanuatu Ltd (AVL), had left the runway in critical need of repair.

Getting current: New tech giving more Africans access to electricity

Charles Feinstein's picture
Control room at a power station in Ghana. (Photo by Jonathan Ernst / World Bank)

Much work remains to be done to ensure reliable electricity access for Africa's citizens. A number of complications are making it difficult to achieve this UN Sustainable Development Goal. Yet access rates are expanding in many nations, and technology and design improvements offer opportunities to make rapid leaps forward. 

Of the 1.1 billion people on Earth without access to electricity, about half live in Africa. And while the World Bank’s Global Tracking Framework shows progress is being made to deliver electricity to those without, most of it is taking place in Asia. In Africa, it’s a different story.

Bhutan's Gross National Happiness (GNH) and the World Bank

Genevieve Boyreau's picture
Photo Credit: Oliver Jammes

The concept of “Gross National Happiness” has been long discussed, debated, understated, overstated or seen as a gimmick. Now what is really Gross National Happiness? And how does the World Bank engagement fit in it? Let’s look into it together in an attempt to de-mystify the concept into what it really is, which is: a vision, broad policy directions trickling down to programs, a survey, a policy screening tool, and yes also, a foreign policy instrument and a brand.
                  
The visionary statement, “Gross National Happiness is more important than Gross Domestic Product” was first enunciated by His Majesty the Fourth King of Bhutan in the 1970s. In turn, the Fifth King declared: “Today, GNH has come to mean so many things to so many people but to me it signifies simply - Development with Values. Thus for my nation today GNH is the bridge between the fundamental values of kindness, equality and humanity and the necessary pursuit of economic growth.” Article 9-2 of the constitution directs the state “to promote those conditions that will enable the pursuit of Gross National Happiness”.
 
GNH is translated into broad policy directions that provide the Government’s overarching, long-term strategies and five-year plans. The four pillars of GNH philosophy are: sustainable development; preservation and promotion of cultural values (traditional and cultural heritage paramount  - its loss leads to a general weakening of society); conservation of the natural environment (Bhutan’s constitution: 60 percent forest coverage, green economy), establishment of good governance.

Free, French course on PPPs offers customized case studies, relevant regional perspectives

Olivier Fremond's picture
Free, French course on PPPs



As a former country manager in Benin, my team and I advised the national administration on the Public-Private Partnerships (PPP) Project Law then under consideration and engaged in PPPs. This effort took place after the private sector, both domestic and international, made a strong commitment to finance large infrastructure programs. Timing is everything, of course, and the window for passing the legislation through parliament before legislative elections was tight – ultimately, too tight. A better understanding of PPPs and the options these partnerships can offer to a country like Benin, which needs substantial infrastructure investments, would have helped the process tremendously.

At the time, however, PPP educational options for French speakers were scarce. Although plenty of PPP resources exist in English, many fewer tools are available for Francophone African countries. These tools are critical to understanding PPPs, creating and adopting legislation, applying PPPs when they may serve a need, and knowing when not to use them to secure infrastructure services.

Ending a 20-year water crisis in a remote village in Solomon Islands

Evan Wasuka's picture
Surrounded by water, Nanngu’s taps have been without drinking water for the past 20 years.

With the throttle at full tilt, the boat cut through the surf, spraying salt water into the air. 
Around me, the unfolding scenery is breathtaking. White sandy beaches, turquoise blue seas, swaying coconut palms – the textbook image of paradise in the South Pacific.
 
What more could one ask for in paradise?  

Water, is what they will tell you. “They” are the people of Nanngu Village on the island of Santa Cruz in the far east of Solomon Islands. 
 
Out here, water to drink, cook food with, wash and keep clean is hard to come by.
 
The last time they had proper running water was 20 years ago. That came to an end at the hands of a Category Three cyclone, Nina, which hit the islands in 1993.
 
As I write this, we’re on our way to Nanngu to see a new World Bank-supported project bringing water to the village.

The way out of poverty and corruption is paved with good governance

Sri Mulyani Indrawati's picture

Woman speaks to World Bank MD and COO Sri Mulyani Indrawati in the Nyabithu District of Rwanda. © Simone D. McCourtie/World Bank

For the first time in history, the number of people living in extreme poverty has fallen below 10%. The world has never been as ambitious about development as it is today. After adopting the Sustainable Development Goals and signing the Paris climate deal at the end of 2015, the global community is now looking into the best and most effective ways of reaching these milestones. In this five-part series I will discuss what the World Bank Group is doing and what we are planning to do in key areas that are critical for ending poverty by 2030: good governance, gender equality, conflict and fragility, creating jobs, and, finally, preventing and adapting to climate change.


Twenty years ago, the World Bank took up the fight against corruption as an integral part of reducing poverty, hunger, and disease. The decision was groundbreaking then and remains valid today. Corruption diverts resources from the poor to the rich, leads to a culture of bribes, and distorts public expenditures, deterring foreign investors and hampering economic growth.

Terrorism makes stability more important to Arab youth than democracy

Christine Petré's picture


Young Arabs express the same concern over the rise of the Islamic State (IS) as young people do elsewhere, the annual Arab Youth Survey reveals. For the second year in a row, the “rise of” IS militants is perceived as the main problem facing the region, with four in every five young people interviewed saying they were more concerned about it than other problems. Its public appeal may have also decreased slightly, findings in the survey suggest.

You liked Oceans 11? Wait till you see Oceans 2030

Yuvan A. Beejadhur's picture
 Arne Hoel / World Bank.

The ocean is a powerful resource and the next economic frontier. WWF estimates that the ocean economy is the 7th largest economy, valued at US$ 24 trillion. With more than 6 million women directly employed in the fishery sector, and global job numbers set to grow to 43 million by 2030, the oceans are roaring. Yet, its natural capital has been systematically undervalued and overdrawn. According to the Bank’s Sunken Billions Revisited report, we are foregoing about $85 billion a year in additional revenues due to the mismanagement of fisheries. It is imperative that countries and citizens make informed decisions on resources, spatial planning and other important factors including the costs of marginalizing poor communities and the loss or degradation of critical habitats.
 
But oceans are often neglected in the development discourse. Obtaining the SDG 14 goal on oceans was a gargantuan, albeit noble effort. The Financing for Development architecture, the “Life below Water” goal and the Intended Nationally Determined Contributions (INDCs) made in Paris, urge us to capitalize on a new narrative: long-term financing of sustainable ocean economies in a climate change context.
 
Enter Oceans 2030
This is why the Bank is looking at oceans anew. People who saw our Oceans 2030 banner asked us if George Clooney or Julia Roberts were attending the 2016 Spring Meetings. While neither could make it, 20 Ministers of Finance and their representatives came to the first high-level ministerial dialogue, “Oceans 2030: Financing the Blue Economy for Sustainable Development”
                                                           
With a cast including Bank VP Laura Tuck and Ségolène Royal, France’s Minister of Environment, Energy and the Sea (and COP-21 President), countries tackled complex questions about the ‘Blue Economy’. What’s stopping us from maximizing returns in jobs and GDP from a thriving blue economy with growing natural resource assets? How can we reduce uncertainty and produce sustainable, investable projects? Whether it is Seychelles’s blue bonds, USA on eco-tourism, the ‘Gabon Bleu’ or Colombia’s actions to address the inequality in coastal populations, countries are starting to see the merits of a balanced approach for harnessing the potential and wealth of oceans. They’re looking for ideas, finance, and knowledge to grow sectors like aquaculture, marine tourism especially cruises, marine biotechnology and cancer research.

Can North Africa leapfrog together in work and welfare?

Heba Elgazzar's picture
Dana Smilie

It was December 8, 2010, when I boarded a plane after a routine trip to Tunisia.  There was nothing out of the ordinary that would have provided a clue as to the dramatic upheaval to come.   The taxi drivers rarely spoke of politics, poverty was an untouchable topic of conversation, and YouTube was blocked.  However, over the course of that winter, uprisings erupted throughout Tunisia, Libya, Egypt and beyond that called for greater social justice.  Investment policies had privileged elites for too long. Social and labor policies had not been that effective at promoting inclusiveness.   Each country has since struggled to maintain political stability while addressing demands for improving work and welfare, with mixed results. 

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