Syndicate content

public-private partnership

The Importance of Managing Unsolicited Proposals in Infrastructure

François Bergere's picture

Transparent, competitive bidding is a sound way for the public sector to buy goods and services. It is also standard procedure for Public-Private Partnerships (PPPs). Besides reducing opportunities for corruption, this approach generally attempts to achieve the best value for money and is perceived as fair by all stakeholders. When the sums involved are big, for example, in large infrastructure projects, transparency in government procurement becomes even more critical. Unsurprisingly, competitive bidding is considered best practice in most countries, not only in the public sector but also for corporations and institutions such as the World Bank Group.
 
This system works well when a government knows exactly what goods and services are procured for infrastructure development that best serve the public interest. But in many developing countries, governments may not have the requisite capacity and resources to define the scope of the project, or to prepare the tender documentation. Such situations often lead to inadequate infrastructure development. Sometimes the private sector uses such opportunities to proactively submit proposals for infrastructure projects on their own without waiting for a government initiated tender.
 
When the private sector submits such types of proposals, they are called Unsolicited Proposals, or USPs. USPs are an exception to the typical government-initiated approach and allow a private company to initiate the process. A private-sector entity (“USP proponent”) reaches out to the government with a project proposal to develop an infrastructure project. Typically, such a project may not have been identified within the government budget or policies, and the project’s purpose and need may not have been defined. In some instances, a USP may be nothing more than a mere idea or concept when it is presented to the government.

The Telecom Sector Leads Private Participation in Infrastructure

David Lawrence's picture

Recent data from the World Bank’s PPP Group and PPIAF show that the telecommunications sector led private participation in infrastructure in emerging markets in 2013. At $57.3 billion, the telecoms sector barely edged out energy, with both representing 38 percent of total PPI. Although total PPI sank by 24.1 percent in 2013 compared with 2012 levels, the telecom sector fell by only 7 percent, demonstrating its relative resilience.




Unsurprisingly, more than half of PPI telecom investment is in the mobile access segment. The top five projects in the telecom sector in every region are in mobile. The next-largest segment is multi-service providers, with 44 percent of all investments.  


Recent World Bank Data Reveal Worrying Trends in Transport

David Lawrence's picture



The World Bank’s Public-Private Partnership Group and Public-Private Infrastructure Advisory Facility report that total private participation in infrastructure (PPI) fell in the transportation sector in emerging markets by 39 percent to $33.2 billion in 2013, compared with 2012 levels.

In part, this reflects a broader trend – overall, PPI in all infrastructure sectors fell by 24 percent. The biggest drop was in South Asia, which saw PPI in transport fall from just over $20 billion in 2012 to approximately $3 billion in 2013, mostly because of significant decreases in India. Two other regions – Latin America & the Caribbean (LAC) and Eastern Europe and Central Asia (ECA) – also saw decreases. PPI in transport increased in East Asia and the Pacific (EAP) and Africa, but not by enough to offset decreases elsewhere.



2013 Transport PPIs by region
 
This is not good news for the world’s poor. Transportation is a critical component of development and growth, enabling people to access schools, hospitals and markets. It facilitates labor mobility and ensures that raw materials and finished goods get to customers. In rural areas, transportation systems provide an economic and social connection with the rest of the country. Within cities, good urban transportation is often the only form of transportation available to the poor. It also improves the flow of goods and services, reduces greenhouse gas emissions, and improves the overall quality of life.

Creating and Sustaining an Essential Partnership for Food Safety

Juergen Voegele's picture
Photo by John Hogg / World BankThis week, the Global Food Safety Partnership will hold its third annual meeting in Cape Town, just ahead of the holiday season when food safety issues are not on everyone’s minds. They should be. Unsafe food exacts a heavy toll on people and whole economies, and is cited as a leading cause of more than 200 illnesses. However, safe food does not need to be a luxury—which is something that motivates and animates our work at the World Bank Group. Food availability alone does not guarantee food safety. Increasingly, we are learning how food safety affects people, and disproportionately impacts the lives and livelihoods of poor people.This growing awareness about food safety is partly because of the food scares that have shaken many countries in recent years. Food safety incidents occur anywhere in the world—both in industrialized and developing countries alike and in countries large and small...

Matching development challenges with tech solutions in the fight against extreme poverty

Sarah McCue's picture
The goals of multilateral development agencies, United Nations and World Bank Group are laser-focused on the post-2015 development agenda, calling for transformative change by eradicating extreme poverty and raising economic prosperity for all.  This vision for a new era in development is rightly bold and ambitious, but cannot be delivered without fully embracing the transformative power of technology and innovation, including information and communications technology or ICT. 
 
Most would agree that technology solutions exist for most every seemingly intractable problem.  Yet often our greatest challenge is to match the problem with the solution.  In my various “technology for development” and trade promotion roles with the United Nations and World Bank, it is so clearly evident that government leaders know what problems they need to solve, but are simply unaware of the technology solutions available to them. Even the most highly informed development experts are not aware of the technologies being produced for their particular area of expertise, and technology firms are often unaware of the vast and specific challenges developing countries face. 
 
Thus, it is critical to first identify specific, not general challenges in areas such as access to capital, business creation, countrywide connectivity, education and training, employment, environmental protection, government administration, health, housing, hunger, infrastructure, pollution, population growth, trade expansion, waste, water scarcity, and women’s empowerment.  These are but a fraction of problems facing the developing world.
Photo: flickr, courtesy of the Bill & Melinda Gates Foundation (http://ow.ly/zjGTn)

What is a Smart City and How Can a City Boost Its IQ?

Maggie Comstock's picture

Earlier this month, the World Bank hosted a Smart Cities for All workshop in Washington, DC which convened experts from the United Nations, academia, government agencies, non-profits and industry. The purpose of the workshop was to share insights and experiences of equipping cities with the tools for intelligent growth. Additionally, the forum established a public-private partnership for collaboration in pursuit of shared goals for global sustainability. But what does it mean to be a “smart city”? Is this distinction only reserved for cities starting from scratch? Can an established city boost its IQ?

First, we must take a step back to reflect upon what it means to be a “smart city.” While there is no official definition, many have contributed to this debate. Industry leaders, such as Seimens and IBM, believe that stronger use of technology and data will enable government leaders to make better informed decisions. Whereas others, including the Sustainable Cities Blog’s very own Dan Hoornweg, consider the social aspects as a component of what it means to be a smart city. In his blog, “Smart Cities for Dummies,” published last November, Dan contends: “At its core a smart city is a welcoming, inclusive city, an open city. By being forthright with citizens, with clear accountability, integrity, and fair and honest measures of progress, cities get smarter.” Though I agree with both the data-driven and socially-conscious approaches, I’d like to propose my own definition of a smart city.

A small country bringing about big change

Ritva Reinikka's picture

Thousands of Basotho joined HM King Letsie III last Friday at the inauguration of a state-of-the-art hospital in Maseru, Lesotho. The new hospital, together with its three filter clinics, is bringing modern, high-quality health care to about half a million people—or a quarter of Lesotho’s population—living in Maseru district, and also serving the country as a revamped national referral and teaching hospital. 

Prime Minister Mosisili reminded the audience of Lesotho’s history as a British protectorate. “The protectors gave the country its first national hospital in 1957 and named it Queen Elizabeth II after their Queen,” the PM said. “The new hospital is ours and we named it after our Queen, ’Mamohato.”

Why is this hospital so important? It symbolizes a fundamental change in publicly-funded health services in Lesotho.  The transformation in the country's health sector is supported by a unique partnership between the government and the private sector that is truly exciting as Africa looks for ways to reach the 2015 Millennium Development Goals, especially those related to saving mothers and children and fighting HIV/AIDS.

The new normal

James Bond's picture

Representatives of chambers of commerce and private sector promotion agencies from developing countries expressed their concerns about where the new sources of growth would come from in future years, at a meeting of the World Bank Group's Private Sector Liaison Officers held in Istanbul on October 5.

A lively discussion between the PSLOs and MIGA management covered subjects relating to foreign direct investment into emerging economies, as well as investments by emerging economies into other emerging economies ("South-South" investment). 

There is a real concern about how the infrastructure gap in developing countries will be filled following the crisis, given the new scarcity of private funds for public-private partnerships.