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What it takes for subnational PPPs in Brazil

Grégoire Gauthier's picture
 

Brazil was one of the top five investment foreign and domestic private flows destinations for 2017. Nonetheless, foreign flows towards the country through Public Private Partnerships (PPPs) and concessions have sharply declined, from US$59.2 billion in 2012 to US$7.3 billion in 2017, according to World Bank latest  PPI Annual report.

What to do to regain the levels of 2012?

Event: 50 Years of Measuring World Economies – Wednesday May 23, 2018 at 4pm EST

Nada Hamadeh's picture
Join us live online or in-person on Wednesday at 4pm for "50 Years of Measuring World Economies" event held at the World Bank James D. Wolfensohn Atrium in Washington, DC.
 
The International Comparison Program (ICP) – the world’s largest global data initiative led by the World Bank under the auspices of the United Nations Statistical Commission – is celebrating its 50th anniversary this year. Since the initiation of the ICP as a modest research project at the University of Pennsylvania by Irving Kravis, Alan Heston and Robert Summers in 1968, the Program has grown to cover about 200 countries and 20 global, regional and sub-regional agencies.
 

To commemorate this milestone, World Bank Group Chief Executive Officer Kristalina Georgieva, 2015 Nobel Laureate in economics Sir Angus Deaton, and Georgetown University Provost Robert M. Groves will come together at an event to discuss the challenges and opportunities for investing in evidence for sustainable development. In addition, Lawrence H. Summers, the 71st Secretary of the US Treasury and son of ICP co-founder Robert Summers, will share a recorded tribute. A video produced by the World Bank for the occasion will showcase the history and impact of the ICP.

#3 from 2017: Bringing technology to the doorsteps of India’s smallholder farmers for climate resilience

Priti Kumar's picture

Our Top Ten blog posts by readership in 2017. This post was originally posted on September 7, 2017.

Photo by Nitish Kumar Singh“I walk through three farm plots of my fellow farmers every day to examine the crop growth and occurrences of pest attacks or crop failure. I send photo alerts via my smart phone to Cropin, which sends an advisory within a few minutes to remedy the problem, said Pratima Devi, a climate smart village resource professional in Manichak village in the Barachatti block of Gaya district in Bihar, India.
 
Cropin Technology Solutions Pvt. Ltd, a private software and mobile apps company, has developed digital applications to advise farmers on ways to achieve optimal harvests, depending on weather conditions, soil and other indicators. In less than a month, Pratima Devi completes a visit to all the farm plots in her village that are registered to get agro-advisories. “Women farmers appreciate my efforts and have started trusting my advice because they see a positive difference on their farms,” she adds.

Ramchandra Prasad Verma has the status of a master trainer of climate-smart village resource professionals in the same Barachatti block. He succinctly explains how data on weather parameters, such as rainfall, temperature and humidity, provided by the Automatic Weather Station (AWS), which was installed by another private Indian company, Skymet, helps farmers make smarter decisions in the village. “When the AWS shows temperatures of 35-40 degree Centigrade, farmers will wait for cooler temperatures before transplanting paddy mat nurseries into the field. Otherwise, there is a fear of losing crops in high temperatures”, said Verma. Earlier farmers relied on traditional wisdom alone, but now digital information can help them make faster and better decisions on the times of sowing and harvesting.

When Verma was a village resource professional, he had raised the maximum number of alerts in Bihar and received many advisories from Cropin on sowing, soil health, seed treatment, and weather forecasts that benefitted farmers. Over time, he developed skills to interpret technical advisories, train farmers to apply information on their fields, and interact with Cropin and Skymet professionals, which earned him the status of a master trainer.

Global poverty today, the 1908 winter in St. Petersburg, and ‘controversy bias’

Francisco Ferreira's picture

Robert Allen’s recent AER paper on “Absolute Poverty: When Necessity Displaces Desire” is a fascinating read, on many levels. The paper uses linear programming (LP) to compute (four variants of) least-cost diets for twenty countries, using prices from the International Comparisons Project (ICP) microdata. To the resulting least-cost food budgets, estimates of non-food costs covering housing, fuel, lighting, clothing and soap are added, generating “basic need poverty lines” (BNPL) for each country.

The 2017 global poverty update from the World Bank

Francisco Ferreira's picture
This year’s global poverty update from the World Bank is a minor one. Until reference year 2008, the World Bank published new poverty estimates every three years, and between 2010 and 2013 we released new numbers every year (see here).

The power of data in driving sustainable development… Is solid waste the low hanging fruit?

John Morton's picture
Photo by Lisa Yao / World Bank


The data revolution is upon us and the benefits, including improving the efficiency of corporations, spurring entrepreneurship, improving public services, improving coordination, and building profitable partnerships, are becoming more evident.

For public services, the potential gains are impressive. Globally in the electricity sector, an estimated $340 – 580 billion of economic value can be captured by providing more and better data to consumers to improve energy efficiency, and to operators for streamlining project management and the operation of their facilities. Even larger gains ($720 – 920 billion) could be captured in the transport sector.

Exploring the benefits of open data in the solid waste sector has been slower than for other services, however, if you take a closer look, the benefits may be substantial. Solid waste services have a lot to gain – with low service coverage and a lack of modernization in most parts of the world; solid waste services can be costly, representing 10 – 50% of municipal budgets in many developing countries; and it is directly dependent on many actors. To be effective, citizens, institutions, and private companies need to be informed and involved.

[Download: What a Waste: A Global Review of Solid Waste Management]

Some examples of what making better quality data available on solid waste services could do include: 

The best laid plans… have data. With average waste collection rates of 41% and 68% for low- and lower middle-income countries, respectively, and less than 10% of the corresponding waste disposed in a sanitary manner, many municipalities in the world lack solid waste services. The introduction of modern solid waste systems in these areas represents a monumental organizational change and logistical challenge. It necessitates the introduction of collection services for, among others, each household, and every commercial building and supermarket; the coordination with, informing, and incentivizing all the actors in recycling; the operation of transport services; and the operation of effective disposal or treatment options for the daily, relentless influx of waste. Systematically collecting quality data will help municipalities to undertake strategic planning, integrate service planning into urban planning, and make the necessary decisions that allow them to establish a solid waste system that is properly dimensioned and cost-effective. 

Time to rethink how to harness the private sector to improve sustainable solid waste management

John Morton's picture
Photo credit: Gigira / Shutterstock.


The post-2015 Sustainable Development Goals (SDGs) are an ambitious set of targets that aim to support a comprehensive vision of sustainable development that embraces economic, social, and environmental dimensions. Solid waste plays an important role in several of these goals, including providing sanitation for all, making cities and human settlements sustainable, encouraging sustainable consumption, and reducing climate change.
 
In the planning undertaken by Multilateral Development Banks (MDBs) to help achieve these goals, one glaring fact stood out: the financial resources needed are not only expected to be substantial, in the “trillions” of dollars annually, but they far outweigh the current “billions” of dollars annually in financial flows from development institutions. Considering this information, it was agreed at the Hamburg G20 Summit that a new approach would be needed to unlock, leverage, and catalyze other sources of financing, including private sector resources.
 
The approach would more systematically prioritize private financing solutions when they are feasible. That is, private solutions that are already working would be considered as a first option; followed by encouraging private investment by reducing policy and regulatory gaps and risks that currently discourage participation; and, finally, as a last option, when private solutions cannot fulfill all the demands of the sector, public resources could be strategically used.
 
Considering the successes and challenges of private sector involvement in solid waste, it is an opportune moment to begin to ask: what are the key issues that need to be addressed to better leverage the private sector to provide sustainable solid waste management solutions?
 
[Read: World Bank Brief on Solid Waste Management]
 
Have solid waste laws done enough?  Regulations and policies have progressed significantly, with many countries establishing new solid waste laws that replace decades-old sanitation or public nuisance legislation. Have these reforms gone far enough to specifically encourage the private sector?  Are there functional mechanisms for cost recovery, and is there sufficient flexibility for the private sector to pursue a variety of contractual and financing arrangements? Are the laws truly motivating investment into modern facilities by providing enforceable requirements and standards for the establishment of landfills, closing dumpsites, and establishing recycling facilities? Are the financing schemes predominantly focused on public financing, or do they cater to what the private sector financing needs? It is worth a second look at how these laws respond to these and other issues, and learning from those countries that have taken them on.

David Baxter - 10 Candid Career Questions with Infrastructure & PPP professionals

David Baxter's picture



Editor's Note: 

Welcome to the “10 Candid Career Questions” series, introducing you to the infrastructure and PPP professionals who do the deals, analyze the data, and strategize on the next big thing. Each of them followed a different path into infra and/or PPP practice, and this series offers an inside look at their backgrounds, motivations, and choices. Each blogger receives the same 10 questions that tell their career story candidly and without jargon. We hope you will be surprised and inspired.

Boosting access to market-based debt financing for sub-national entities

Kirti Devi's picture



Many countries are experiencing urbanization within the context of increased decentralization and fiscal adjustment. This puts sub-national entities (local governments, utilities and state-owned enterprises) in the position of being increasingly responsible for developing and financing infrastructure and providing services to meet the needs of growing populations.
 
However, decentralization in many situations is still a work in progress. And often there is a mismatch between the ability of sub-nationals to provide services, and the autonomy or authority necessary to make decisions and access financing—often leaving them dependent on national governments. Additionally, they may also contend with inadequate regulatory and policy frameworks and weak domestic financial and capital markets. 

Filling the local PPP capacity gap in Brazil: how the CP3P program can help

Marcos Siqueira's picture


Photo: Passarinho/Pref.Olinda | Flickr Creative Commons

A few weeks ago, I delivered the training for the Certified Public-Private Partnership Professional (CP3P) Preparation exam to a group in São Paulo. I was about to commence my closing remarks at the end of the three-day very intensive journey, when a particularly dedicated participant asked: “Why is it that we have never heard of so many of these concepts before?”
 
It was indeed a very good question.


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