public-private partnerships

GIF: making climate-smart infrastructure bankable

Photo: only_kim / Shutterstock.com

There are many drivers of climate change, but few would disagree that energy infrastructure built according to “business-as-usual” standards is a major one. Meeting the lofty goals set at the 2015 Paris Climate Accords requires powering our homes, businesses, and government agencies with a cleaner mix of energy that includes more renewable sources. It also requires promoting standards that encourage energy efficiency—for example, for appliances or building codes—as a low-cost and high-impact way to reduce greenhouse gas (GHG) emissions.

The Global Infrastructure Facility (GIF) is playing a positive role by preparing bankable, climate-smart projects that help countries build low-carbon energy infrastructure and encourage greater energy-efficiency measures. The GIF both drives and leverages private sector investments in climate-smart projects by promoting good governance and standardization in project preparation and has a sizeable portfolio of climate-smart projects in the pipeline.

The road to sustainability: modernizing Croatia’s largest infrastructure asset

Photo: HAC/Croatian Motorways

The state of Croatia’s road sector poses a unique challenge compared with more typical World Bank projects where road assets either need to be developed or require significant rehabilitation. If you've ever had the chance to experience Croatian roads you'll quickly realize the country has a well-developed motorway and state road network, in relatively good condition. This begs the question: how can the World Bank help improve a sector with already high-quality assets in a middle-income country like Croatia?

'Build and operate' increasingly common in social infrastructure

Photo: Northern Beaches Hospital | New South Wales Ministry of Health

The way that social infrastructure is being built and paid for is changing. New healthcare facilities, prisons, and public housing have long been constructed under public-private partnerships (PPPs), but the PPP model is now stretching into the operation of the facilities.

Called “operator-led PPPs”, this approach puts the private sector in charge not just of the construction of infrastructure but of the operation of services afterwards for a defined period. For instance, in a hospital PPP the private company would provide clinical services such as x-rays as well as the building. This is also known as an outcomes-based PPP.

This approach transfers operational risks from the state body to the private partner, but the state still retains oversight of the quality of service through key performance indicators, service criteria, and performance standards. Financial penalties are put in place for failure to meet the required standards.

The power of sunlight: incentivizing private investment in solar PV

Photo: Pixabay Creative Commons

Solar power is experiencing a surge in popularity across the globe. It prevents carbon emissions, helps diversify the power generation mix, reduces dependence on fossil fuels, and can increase off-grid energy access.

With falling costs of solar photovoltaic (PV) technology, advancing storage technology, and grid integration, prices for solar PV electricity have been falling rapidly around the world and solar is now in many countries price competitive with traditional energy sources and has become particularly attractive for developing countries.

Promoting bankable PPPs in Brazilian municipalities

Photo: Gordon | Flickr Creative Commons

Public-private partnerships (PPPs) in Brazil have been around since 2004 when federal legislation established the legal framework to make them possible. Since then, approximately 100 PPP contracts have been signed in Brazil, totaling almost 160 billion Brazilian reais ($50 billion) in private investment in numerous sectors, including hospitals, schools, public lighting, sanitation, solid waste management, sport arenas, public buildings, urban transport, and roads. Some notable successes include the Belo Horizonte schools PPP, which supports non-pedagogical services in 51 schools, and the 298-bed Bahia Subúrbio Hospital, which opened in 2010.

The GIF: Having what it takes to develop infrastructure

Photo: Burst | Pexels Creative Commons

Australia’s involvement in the Global Infrastructure Facility (GIF)—as a founding member, and co-chair of the advisory council over the past year—underscores our commitment to lift investment in global infrastructure, which is a critical component to ensuring economic growth and poverty alleviation.

Strong economic infrastructure underpins human development, enables movement of people and goods, provides access to and expands markets and services, facilitates innovation, and enhances competitiveness.

New data reveals uptick in private investment in EMDEs in 2017

Photo: Creativa Images | Shutterstock

Critically constrained public resources on the one hand, and huge existing infrastructure needs for basic services on the other, make private participation in emerging markets and developing economies (EMDEs) not just critical, but in fact, imperative. Crowding in private finance is essential to spur economic development and meet the twin goals of shared prosperity and elimination of extreme poverty, as well as to achieve the Sustainable Development Goals.

The Private Participation in Infrastructure (PPI) Database, with data spanning over almost 27 years, has become a powerful tool and measure for gauging the level of private investment in infrastructure in EMDEs.

SDGs and PPPs: What's the connection?

Photo: World Bank Group

By committing to the Sustainable Development Goals (SDGs), countries pledge to pursue progress on economic, social, and environmental targets, in a balanced and integrated manner. The SDGs are cross-cutting and ambitious, and require a shift in how we work in partnership. They also push us to significantly change the level of both public and private investment in all countries.

We need creative solutions to leverage each partner’s comparative advantage. We also need to mobilize private sector investment and innovation in support of the SDGs.

Keep up with the latest trends on PPPs

Photo: ispyfriend / iStock

It seems like every week there are new reports being published about public-private partnerships (PPPs) by different organizations around the world. How can you keep track of what’s new and what’s relevant for your work?

With over 4,000 documents on PPPs in seven different languages (English, Spanish, French, Portuguese, Arabic, Russian, and Chinese) in its searchable document library, the PPP Knowledge Lab has become a key resource for the PPP community to keep up to date with the latest on PPPs.

What’s been trending over the last quarter on the PPP Knowledge Lab?

Low-carbon infrastructure: an essential solution to climate change?

Photo: Felix_Broennimann | Pixabay Creative Commons

Infrastructure is a key driver for growth, employment, and better quality of life in emerging markets and developing economies (EMDEs). But this comes at a cost. Approximately 70% of global greenhouse gas emissions come from infrastructure construction and operations such as power plants, buildings, and transport. The Overseas Development Institute estimates that over 720 million people could be pushed back into extreme poverty by 2050 as a result of climate impacts, while the World Health Organization projects that the number of deaths attributable to the harmful effects of emissions from key infrastructure industries will rise from the current 150,000 per year to 250,000 by 2030.

Does this mean we need to build less infrastructure? No. But part of the solution lies in low-carbon infrastructure.

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