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Prioritizing infrastructure investments: Panama’s long-term path to PPPs

Cledan Mandri-Perrott's picture


In Panama, a healthy economic climate and enthusiastic institutional support provided an ideal testing ground for the World Bank’s Infrastructure Prioritization Framework (IPF). The country’s GDP growth and economic buoyancy in 2014 motivated an ambitious public investment program, accompanied by a high number of infrastructure project proposals to the Ministry of Economics and Finance. Coupled with political commitment to narrow the deficit, Panama moved to implement select projects for a five-year strategic period.

Prioritizing infrastructure investments: Helping decision-makers do their job

Cledan Mandri-Perrott's picture

Government officials and PPP practitioners make difficult decisions about infrastructure projects all the time. But perhaps the choice they grapple with the most is which projects to select for implementation within a given investment period. Many factors come into play, such as government budget constraints, the relative efficiency and effectiveness of investments, as well as costs and benefits of projects to society. With so much to consider, governments need improved decision-making frameworks that are rigorous enough to accommodate multiple components but practical enough to remain feasible and affordable.

Rebooting Vietnam’s PPP program: Legislation that builds on lessons learned

Stanley Boots's picture

After over two years of development and drafting, Vietnam’s Decree 15 on Public Private Partnerships (PPP Decree) came into effect last spring. Dedicated specifically to the identification, preparation, and implementation of PPP projects, the PPP Decree replaced the largely unimplemented regulations for pilot PPP projects as well as the regime for build-operate-transfer (BOT), build-transfer-operate (BTO), and build-transfer (BT) projects. Almost a year after the PPP Decree was issued, it’s become clear that it has rebooted Vietnam’s potential for PPPs in a significant and lasting way. 

Vlog voice from the field: Reflecting on the Caribbean PPP bootcamps

Brian Samuel's picture

Past PPP Blogs introduced readers to the Caribbean Regional Support Facility, which ran a series of boot camp-style workshops to increase technical capacity among Caribbean government officials and achieve long-sought results. In our newest video blog from the field, Brian Samuel, a PPP Coordinator with the Caribbean Development Bank (and a former IFC staffer), explains how these PPP boot camps transformed talk into action. Brian's first installment of this series can be found here.

Harvard Kennedy School and IFC team up for senior training on PPPs and project finance

Isabel Chatterton's picture

I recently had the chance to get to know dozens of forward-thinking, dynamic individuals from the public and private sectors. Despite their varied backgrounds, resumes, and perspectives, they shared one thing in common: they have all been influential in shaping the Asia Pacific PPP landscape. Our gathering was part of the IFC PPP Transaction Advisory Services Unit’s four-day Senior Training Program on PPPs and Project Finance, in collaboration with the Harvard Kennedy School in Singapore.

All of the participants – government representatives, donors, private sector clients, World Bank and MIGA staff, as well as senior IFC staff -- offered a different view on how best to combat today’s global PPP challenges. We captured a few key insights from the training program to share with others:

Mythbusters: Using data to disprove PPP fallacies

Schuyler House's picture
Photo Credit: NATS Press Office

Editor’s Note: The World Bank Group is committed to helping governments make informed decisions about improving access to and quality of infrastructure services, including using Public-Private Partnerships (PPPs) as a delivery option when appropriate. One of the PPP Blog’s main goals is to enhance the understanding of PPPs while eliminating misconceptions about them, ultimately enabling better decision making throughout every stage of the PPP cycle. To that end, the new “Mythbusters” series, authored by PPP professionals, addresses and clarifies widely-held misunderstandings.

In the PPP universe, both advocates and detractors use anecdotes to prove their points about PPPs and infrastructure. PPP successes and debacles are recycled endlessly to argue for one side or the other. But we can move past the myths, in part with the help of the World Bank’s Private Participation in Infrastructure (PPI) Project Database, which includes information on over 6,000 projects from 1984 onwards, capturing data across 30 fields, including contractual form, project closure date, location, contract duration, private sector partners, and multilateral support. By drawing on that resource, alongside other large data sets and comparative case studies, we can confirm or debunk PPP myths rooted in popular commentary. Here are a few examples that show how research can set rumors right.

How a parking project in Bhutan contributes to Gross National Happiness

Adele Paris's picture
Photo by Flickr user Khaled Monsoor

In Bhutan, the only country that measures success on a scale of Gross National Happiness (GNH), government officials actively research ways to make residents’ lives happier. So when it became apparent that the growing number of vehicles in Thimphu, the capital city, was increasing traffic congestion and causing intense frustration among locals, the authorities started looking for a solution to restore contentment among its citizens.

The staircase of relationships: 10 key questions

Malcolm Morley's picture

If public sector organizations are to maximize the value from public-private partnerships (PPPs), they need to move their joint working within the public sector from transactional to collaboration to true partnership working.  To do this requires them to move up the Staircase of Relationships (see previous blog).
 
In moving up the Staircase of Relationships, performance will improve within the public sector and the public sector will become a more effective partner with the private sector.  Improvement in performance, however, is not enough.  Public sector organizations should be seeking to transform their performance through public-to-public (P2P) partnerships and to transform the performance that they achieve through PPPs.

A PPP to take pride in: Early education in Brazil

Tomas Anker's picture

Photo: Inova BH

In English, “Belo Horizonte” means “beautiful horizon,” and this is an apt description of the long-term possibilities for educating the children of Belo Horizonte, the sixth largest city in Brazil and capital of the state of Minas Gerais. As a Brazilian who went through the national school curriculum, I believe that this system should be accessible to all citizens, and so I took a particular interest in the goals of this public-private partnership (PPP).

Greater access to education was a widely-shared ambition among the government team as well. The Municipality of Belo Horizonte already believed that a competitive workforce – and a functioning society – depends on good schools. That’s why it made early education a top priority and sought out advisory services from our Brazil-based team to find out if PPPs could help government make the grade. It seemed like this was a proposal the community could stand behind: Demand for better education was already strong, with over 11,000 children, many underprivileged, on a waiting list to enroll in school.

When progress can’t wait, mediate

Jeff Delmon's picture
Photo by Flickr user uberof202

In public private partnerships (PPPs), it’s easy to forget that third “P,” but it’s this concept of a partnership that ensures the health and sustainability of the public-private relationship. Conflict can undermine the PPP relationship, or be used to strengthen it – and that’s why mediation is an important option for PPPs.

Mediation is simply a facilitated negotiation.  It is a very flexible format for resolving differences in international infrastructure projects, as each mediator can structure the process in the manner most appropriate to the situation.  Resolution achieved by mediation is not limited to remedies provided by law, allowing for bespoke settlements that satisfy both parties.


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