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public-private partnerships

Unsolicited proposals in infrastructure: a balancing act between incentives vs. competition

Philippe Neves's picture


Photo: kupicoo/ iStock

A key challenge when developing a policy to manage unsolicited proposals (USPs) in infrastructure projects is to strike a balance between receiving submissions and creating competitive tension. In a previous blog, we warned that USPs should be used with caution as an exception to the public procurement method, and argued that a good policy to manage USPs can help ensure transparency and predictability, and protect the public interest.
 
Surely a government that decides to consider USPs and develops a policy to manage them will look forward to receiving compliant proposals. At the same time, the government should ensure the project represents a fair market price and delivers value for money. Yet what is the incentive for the private sector to submit an unsolicited bid if the government takes it and competitively procures it? How can a government make USPs appealing to the private sector while attracting enough competing bidders?

Reforming Employment Services: Three Steps to Big Change

Jacqueline Mazza's picture
Increasing the number of jobs publicly listed, enabling public and private institutions to better connect workers to jobs will not likely solve the jobs problem in developing countries. (Photo: Jonathan Ernst / WorldBank)


With the right kind of reforms, public employment services can do a better job of matching job seekers from poor households. In low and middle-income countries, individuals from poor households find jobs through informal contacts; for example asking friends and family and other members of their limited network. But this type of informal job search tends to channel high concentrations of the poor individuals into informal, low-paid work.

Job seekers especially from poor households need bigger, more formal networks to go beyond the limited opportunities offered by the informal sector in their local communities. This is where public employment services can help, but in developing countries many of these services just simply do not work well: they suffer from limited financing and poor connections to employers, and governments are looking for ways to reform and modernize them to today’s job challenges.

There are lots of cases where developing countries have improved their public employment services and these can serve as models. The lessons from these successful reforms can be distilled and replicated. Based on our recent publication, here are three case-tested strategies that improved the performance, relevance and image of public employment services.

Scaling up World Bank guarantees to move the needle on infrastructure finance

Pankaj Gupta's picture



It’s not always easy to convince the private sector to participate in public infrastructure projects—especially in developing countries and emerging economies. Why is this a problem? Because there simply is not enough public money to meet the growing demand for infrastructure, which is a key element of development and poverty alleviation. The need is great, numbering in the trillions of dollars.
 
But there is good news—the market has both the trillions and the expertise to use it, if the conditions are right. And the World Bank Group has a number of instruments that can help create an environment that meets the needs of the private sector in financially, environmentally, and socially sustainable ways. Guarantees are one of those instruments, a tool that is highly effective in leveraging limited resources for mobilizing commercial financing for critical infrastructure projects.

Fighting climate change with green infrastructure

Michael Wilkins's picture

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Image: chombosan / Shutterstock

According to NASA, 16 of the 17 warmest years on record have occurred since 2001. So—with climate change high on the global agenda—almost every nation signed the 2015 Paris Agreement, the primary goal of which is to limit the rise in global temperatures to below 2°C above pre-industrial levels. However, with the acute effects of global warming already being felt, further resilience against climate change is needed.
 
To meet both mitigation and adaptation objectives, “green infrastructure” can help.

The Advisor’s Creed: 20 years with IFC Advisory Services distilled into 10 simple lessons

Brian Samuel's picture

Photo: Diana Susselman | Flickr Creative Commons

I worked with the International Finance Corporation (IFC) for exactly 20 years, all of which was in advisory work. I spent five years in Barbados, five in Washington, five in Zimbabwe and five in South Africa: perfect symmetry. On my 20th anniversary, I took a package and returned home, to the beautiful Caribbean. IFC was a great place to work, where we were challenged every day to come up with innovative solutions to seemingly intractable problems. Some of our deals were truly groundbreaking and lived up to IFC’s motto to improve people’s lives. That’s the kind of job satisfaction that money can’t buy.

After 76 countries, millions of air miles, and some pretty forgettable airport hotels, sometimes I look back and think: what was it all about?

The experience dividend for PPPs

Darwin Marcelo's picture


Photo: Gustave Deghilage | Flickr Creative Commons

Does experience in implementing Public-Private Partnerships (PPPs) reduce a country's chances of contract failure?
 
In a recent study entitled Do Countries Learn from Experience in Infrastructure PPPs, we set out to empirically test whether general PPP experience impacts the success of projects—in this case, captured by a project's ability to forego the most extreme forms of failure that lead to cancellation.

A timely report on mobilizing Islamic finance for PPPs

Clive Harris's picture
Also available in: Français | العربية


Photo: Artit Wongpradu / Shutterstock.com

Islamic finance has been growing rapidly across the globe. According to a recent report by the Islamic Financial Services Board, the Islamic finance market currently stands around $1.9 trillion. With this growth, its application has been extended into many areas — trade, real estate, manufacturing, banking, infrastructure, and more.
 
However, Islamic finance is still a relatively untapped market for public-private partnership (PPP) financing, which makes the recent publication Mobilizing Islamic Finance for Infrastructure Public-Private Partnerships such an important resource, especially for governments and practitioners.  

Cynthia Olotch — 10 candid career questions with infrastructure & PPP professionals

Cynthia Olotch's picture



Editor's Note: 
Welcome to the “10 Candid Career Questions” series, introducing you to the infrastructure and PPP professionals who do the deals, analyze the data, and strategize on the next big thing. Each of them followed a different path into infra and/or PPP practice, and this series offers an inside look at their backgrounds, motivations, and choices. Each blogger receives the same 15 questions and answers 10 or more that tell their career story candidly and without jargon. We believe you’ll be as surprised and inspired as we were.  

Helping Brazil realize its infrastructure promise

Paul Procee's picture


Photo: LWYang | Flickr Creative Commons

Since the 1980s, investment in Brazil’s infrastructure has declined from 5% to a little above 2% of the country’s Gross Domestic Product (GDP), scarcely enough to cover depreciation and far below that of most middle-income countries (see figure below). The result is a substantial infrastructure gap. Over the same period, Brazil has struggled with stagnant productivity growth. The poor status of infrastructure is broadly believed to be a key reason for Brazil’s growth malaise.

Building on success: PPPs in a new era of Canadian infrastructure

Mark Romoff's picture

Also available in françaisلعربية 


Photo: Hubert Figuière | Flickr Creative Commons

Canada has quietly become a leading player in the global PPP space. The unique Canadian version of the procurement model has evolved from an innovative idea promoted through the wisdom and passion of a few early believers and visionaries into a widely applied approach, embraced by all three levels of government and in every region of the country.
 
What might seem an “overnight success” has, in fact, taken 25 years of listening and learning to develop a smart, innovative, modern approach to infrastructure and service delivery using Public-Private Partnerships. It’s an approach that ensures real value for tax dollars and the efficient use of precious public resources.


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