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public-private partnerships

In India, this transport engineer is racing toward the future… with German supercars

Shigeyuki Sakaki's picture
Harsh, a civil engineer from Surendranagar, the western State of Gujarat in India, proudly has a collection of supercars recently delivered from Germany. They are all brand new with sleek designs, glossy paint, and fully loaded with state-of-the-art features. One of them is a 600 horse-power monster, another is the first of its kind in India.
 
Without further ado, let's see what he has...

Developing local capital markets to fund domestic long-term financing needs

Ceyla Pazarbasioglu's picture



Finance fuels economic growth and development. Yet, it is also clear that traditional funding sources – public finances, development assistance or banks loans – will not be sufficient to finance the Sustainable Development Goals.

Both developed and developing countries are turning to capital markets to find new sources of funding and to attract private sector financing, investment and expertise.

A key priority for the international development community is to unlock adequate private sector financing so that emerging market countries can meet their financing needs to fund strategic objectives, such as improving infrastructure.

We estimate that the amount of infrastructure financing covered by the private sector could be more than doubled, if countries harness the full potential of local capital markets.

At the World Bank Group, we are committed to marshal our expertise to increase the use of capital markets for investment financing. Helping countries develop government debt markets is vital to our goals of eliminating extreme poverty and boosting shared prosperity.

India’s Tryst with PPPs: The High, The Low… and The Revival?

Sri Kumar Tadimalla's picture
For a considerable period of time, on the score of mobilizing infrastructure investments through private participation among developing countries, India ranked 1st in Energy and Transport sectors.


In several economic infrastructure sectors, India enjoyed a strong track record of harnessing Public-Private Partnerships (PPPs). Private sector investments in infrastructure more than tripled from the 10th Plan Period (2002-07; INR 2 trillion) to the 11th Plan (2007-12; INR 7.3 trillion). Between these plan periods, private sector share in infra investments increased from 22% to 38%. For a considerable period of time, on the score of mobilizing infrastructure investments through private participation among developing countries, India ranked 1st in Energy and Transport sectors and 2nd in Telecom (behind Brazil).
 
This erstwhile success of India’s PPP program is attributable to well-crafted reform efforts by the government, and ably executed by the private sector, banks and other financial intermediaries. Following the economic liberalization initiated in the early 1990s, the government has created an enabling environment for private participation through several sector-specific and cross-sectoral initiatives, e.g., relaxing entry norms, tax concessions, independent regulation in telecom and power, mobilization of additional revenues through tolls and cess on fuel, establishment of a viability gap fund mechanism and India Infrastructure Financing Company Limited, etc.  The financial intermediaries, too, quickly moved up on a steep learning curve to cater to this new and challenging mode of delivering infrastructure services. Private sector responded enthusiastically and seized these opportunities to develop their own capabilities and progressively build larger and complex projects. Today, private sector operators are serving more than 90% of the mobile phone users, owning ~40% of the power generation capacity, built and operating a substantive portion of arterial network of national highways, besides world-class airports in four metros and container handling facilities at many ports.

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.

Private sector, meet irrigation: Planning better ways to feed the future

Cledan Mandri-Perrott's picture

Headlines about climate change often focus on food scarcity, but the problems facing the irrigation sector – which is critical to our ability to feed the future – are usually too complex to make it into the news. For stakeholders in the sector, however, the challenges are all too clear.  Growing investment needs in irrigation have highlighted what’s wrong with the system’s status quo, such as:


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