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public-private partnership

Record investment in transport boosts overall private participation in infrastructure in 2014

Henry Kasper's picture

Imagine record commitments in transport that are 26% higher than the next best year since the inception of the Private Participation in Infrastructure (PPI) Database in 1990. That’s exactly what took place in 2014—massive private participation in transport that culminated in the fourth highest level of global investment (transport, energy, and water) ever recorded. Indeed, the PPI Database’s 2014 Global Update released in June, 2015, shows that total investment in transport hit a record high of US$36.5 billion, driven by a handful of outsized deals in
Latin America and, more specifically, Brazil—including a mega airport project totaling US$10 billion. Meanwhile, energy fell 19 percent year-over-year due to fewer commitments in five out of six regions, while water grew 14 percent, driven by key deals in Brazil, Mexico, and Peru. In a separate report, Telecom showed modest year-over-year declines, extending a trend of fewer projects and lower investment over the past five years.  

From Africa to Asia: Facilitating private investment in infrastructure

François Bergere's picture

Kigali, the capital of Rwanda, is home to more than one million people – and like many urban hubs around the developing world, the city is bracing for a population explosion in the coming decades. More people bring greater pressure on already insufficient and stressed infrastructure, especially water services. But the Government of Rwanda has already announced commitments to increase the local water supply, partnering with the private sector to ensure 100 percent coverage. In March 2015 the government signed a 27-year PPP concession with a private company responsible for a water treatment plant, and support from the Public-Private Infrastructure Advisory Facility (PPIAF) is one of the reasons why.
PPIAF, in partnership with IFC, has been providing institutional support to Rwanda’s Energy, Water, and Sanitation Authority (EWSA) since 2012. The technical support PPIAF and its partners have been providing helped government officials develop a more comprehensive understanding of EWSA’s distribution network and operational performance. Through training and experience-sharing, PPIAF supported capacity building among government institutions and officials, enabling them to work successfully with the private sector.
This is just one of the many examples of positive outcomes that PPIAF’s support has made possible in the past year. PPIAF’s just-released annual report details many others, and it also outlines the significant strategic shifts, staffing changes (including the reopening of our West African office), and programmatic initiatives that took root last year.

5 trends in public-private partnerships in water supply and sanitation

Victoria Rigby Delmon's picture

A lot has been happening in Public-Private Partnerships (PPPs) in the water supply and sanitation sector over the last few years, contrary to some misperceptions. Today’s market is radically different from the 1990s (dominated by the large concession model and appetite of private investors to finance projects) or the 2000s (contract terminations and nervousness about benefits that PPP could bring in the water supply and sanitation sector).

Developing countries, facing the challenges of sustainability and financial viability due to the inescapable realities of poor water supply and sanitation services and constrained budgets, are looking at PPPs as an option worth considering to help performance or to develop new sources.  Applying lessons learned from the past, with a better understanding of what PPPs in water can and cannot bring, water PPPs are being used increasingly by public utilities in a more focused way, to manage a specific subset of activities or challenges, such as increasing energy efficiency and water availability through non-revenue water management, or development of a new water source.  The focus is on performance based contracting, with payments against outputs. 

Big data to improve transparency and performance of our infrastructure

John Kjorstad's picture

Infrastructure requires a lot of coordination throughout the development, construction, maintenance and day-to-day operations of projects and the systems they operate in. Yet, with all of that sophisticated organization, the easiest and often most overlooked issue is communication and the real-time flow of management information.

October 21st, 2015 was “Back to the Future Day” – the date when time-travelling protagonist Marty McFly from the film "Back to the Future Part II” journeys 30 years from 1985 to 2015 in a souped-up flying DeLorean powered by an environmentally sound waste-to-energy system.

Apart from making me feel old for having arrived in 2015 the traditional way (waiting out the passage of time), the media circus around this unusual anniversary of a future temporarily made present -- which has now passed -- got me thinking about how technology might impact my working life in the coming years. What I envisioned is not revolutionary – you can read about it in a separate blog that I published on LinkedInIn fact, everything I described as occurring in 2020 is currently possible by simply applying existing technologies, coordinating information, and communicating efficiently.

Three innovations to drive infrastructure development

Teo Eng Cheong's picture
container ship in Panama canal

A few months ago, I had a chance to visit the Panama Canal, which celebrated its 100th anniversary last year. It is truly a mega-structure that is the largest infrastructure project of its time.
When I saw it, what struck me the most was - “How could this be possible”? One hundred years ago, Panama was a country that was just formed and capital markets were not very well-developed. And technology was obviously not as advanced as it is today.
Fast forward 100 years, in the world today, Asia has a huge demand for infrastructure. In Singapore, we know of Hyflux, which has one of the largest desalination plants in Singapore. Sembcorp Utilities has a power plant project in Bangladesh recently and PSA has a port in Guangxi China. These are just some examples of Singapore companies who have gone into infrastructure development. Yet, not enough projects have been implemented, especially in Asia.

From trash to treasure: Public-Private Partnerships can help with waste management

Jeff Delmon's picture
A heap of trash on a hillside in Kathmandu Valley, Nepal

Our modern world, with its convenience and consumption, creates a whole lot of trash, which in turn suffocates cities and undermines economies. Managing trash is a municipal nightmare. But it should be a banker’s dream, right? Demand will only grow, and the problem needs a solution—without it the entire economy suffers.

But if there’s a simple solution, it has eluded us all. The management of solid waste would seem to benefit from the structuring, efficiencies, financing, and latest technology that can come with public-private partnerships (PPPs). Let’s examine the options at our disposal.

How to accelerate the process and reduce costs for public-private partnerships? Recommended PPP contractual provisions

Mark Moseley's picture

All of the parties involved in public-private partnership (PPP) transactions – including both governments and project developers – frequently express concern over the time and expense involved in creating the legal agreements that are at the center of every PPP project. Everyone recognizes the importance of PPP contracts, since they are the documents that set out how the partnership will work – but there are constant calls for making the contractual drafting process quicker and less expensive.

In response, World Bank Group (WBG)’s PPP Group has launched the Recommended PPP Contractual Provisions Initiative, with the aim of developing recommended language on certain key provisions found in virtually every PPP contract. Under this initiative, the WBG’s PPP Group has produced the Report on Recommended PPP Contractual Provisions, 2015 Edition (the 2015 Report).  The 2015 Report was recently submitted to, and endorsed by, the G20 Infrastructure and Investment Working Group – the committee established by the G20 Group of major economies that focuses on the financing of infrastructure projects.

How can we close the infrastructure gap in Asia? Ideas from the Asia-Singapore Infrastructure Roundtable

Cledan Mandri-Perrott's picture

What does one trillion dollars look like? In the most literal sense, one trillion – that’s one million multiplied by one million -- is a “1” followed by 12 zeroes.  For participants in this week’s Asia-Singapore Infrastructure Roundtable, $1 trillion per year looks like how much infrastructure investment Asia needs to maintain its rapid urbanization.

To advise governments on how to get from here to there, Laurence Carter, Senior Director of the World Bank Group’s Public Private Partnerships Group, and other leaders from around the world shared their ideas during high-level strategy sessions.

Voice from the field: how can we help the Caribbean fulfill the promise of PPPs?

Brian Samuel's picture
From Sept. 29 to Oct. 1, 2015, our first “PPP Boot Camp” was held in Barbados. This is the first of the boot camp-style workshops we are delivering to Caribbean government officials to help them increase technical capacity in public-private partnerships. The boot camp series aims to offer the depth and breadth that’s been missing from the PPP market in the Caribbean.

Indonesian Public-Private Partnerships now speak with one voice

Sinthya Roesly's picture
City and traffic lights at sunset in Jakarta, Indonesia

Translation of PPP Reference Guide into Bahasa Indonesia strongly supports national PPP delivery efforts

Indonesia’s strategy to become one of the 10 major world economies by 2025 – part of a long-term program outlined in its Masterplan for Acceleration and Expansion of Indonesia's Economic Development (MP3EI) – relies heavily on how quickly it can build new infrastructure to support its rapid growth. This entails cooperation among the central government, local governments, state owned enterprises, and the private sector. Of the four parties, according to experts on the ground, “the private sector has a vital role to play in this masterplan (in the form of PPP schemes), as it is expected to contribute the bulk of financing.”