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public-private partnerships

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:

Public-private partnerships and the 2030 Agenda for Sustainable Development

Krishnan Sharma's picture

The implementation of the 2030 Agenda for Sustainable Development and the Sustainable Development Goals presents an immediate challenge. In particular, the financing required for new infrastructure (including clean water, healthcare, and access to energy for all) is huge--amounting to about $5 trillion per year globally.  Given limited government resources, a considerable amount of private finance will be required to fill this gap, and public-private partnerships (PPPs) have been seen as a possible modality through which to attract these additional resources.

How can we accommodate climate-related risks in infrastructure?

Nuwan Suriyagoda's picture

In 2011, Don Muang International Airport in Bangkok, Thailand was affected
by one of the worst floods in 50 years. Photo: Neramit Sisa\Shutterstock
 

If you were traveling through Don Muang International Airport in Bangkok, Thailand in the fall of 2011, you already have a picture of the damage to infrastructure assets brought by unprecedented levels of rainfall.  Water flooded every element crucial to airport operations – airplanes, runways, hangars – and all airport infrastructure was shut down until the crisis passed and repairs could be done. There was no option, as the airport was simply submerged.

But what if future infrastructure projects could be built with an option that allowed them to continue to operate even in the most catastrophic climate-related crisis? What if service delay interruptions were not inevitable, and economic losses were not inescapable?

10 candid career questions with PPP professionals – Aijaz Ahmad

Aijaz Ahmad's picture

Editor's Note: 
Welcome to the “10 Candid Career Questions” series, introducing you to the PPP professionals who do the deals, analyze the data, and strategize on the next big thing. Each of them followed a different path into 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 PPP career story candidly and without jargon. We believe you’ll be as surprised and inspired as we were.  

 

Steering Colombia’s future: Ruta del Sol lays the foundation for nation’s road PPPs

Richard Cabello's picture
Photo: Euroestudios

Like other countries in Latin America, Colombia has been expanding its road network over the years using a variety of public-private partnership (PPP) models and contractual structures. However, many of these projects were not properly prepared and structured, which in some cases has led to contract renegotiations. In addition, these projects attracted very limited participation from international investors.

Predicting success for infrastructure in emerging markets: Moving from art to science

Jyoti Bisbey's picture

with research contributions from Zichao Wei

At conferences, in meetings, and even during casual work conversations, I am asked the same two questions:  “Which countries are ideal for investments in infrastructure?  Where should the investors invest and what new opportunities should they look toward?” 

While sitting in the World Bank gives us a bird’s-eye view of emerging markets and developing economies (EMDEs), it doesn’t offer the up-close-and-personal perspective that investors demand in order to answer these questions in a succinct way.  Not that there’s any shortage of synoptic responses. Any number of “market gurus” can assess projects in a second, gathering all the low hanging fruits which are out there in EMDEs.  If there is a private deal to be made, then the deal is already done.

10 candid career questions with PPP professionals – Chris Olobo

Christopher Olobo's picture

Editor's Note: 
Welcome to the “10 Candid Career Questions” series, introducing you to the PPP professionals who do the deals, analyze the data, and strategize on the next big thing. Each of them followed a different path into 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 PPP career story candidly and without jargon. We believe you’ll be as surprised and inspired as we were.  

A field guide to infrastructure

Chris Heathcote's picture

Birdwatchers and nature enthusiasts already know that a field guide is a book designed to help the reader identify wildlife or other objects that occur naturally, like minerals.  It’s meant to be carried into the “field” to help distinguish between similar objects.

At the Global Infrastructure Hub, we thought it was time for a field guide to infrastructure, pointing out the different resources that populate the landscape and helping them connect better. The Global Infrastructure Hub’s Field Guide to Infrastructure Resources (Field Guide) collects together existing resources and helps the user establish connections among them. 

Development finance frontline: Senegal’s Strategic Investments Fund

Håvard Halland's picture

 

Amadou Hott
Amadou Hott 

“The only way to achieve the sustainable development goals is to use more public capital strategically for unlocking private investment, particularly for infrastructure,” says Amadou Hott, CEO of the Senegalese Fund for Strategic Investments.

The Senegalese Strategic Investments Fund (FONSIS, for its acronym in French) is part of a rapidly expanding network of state-sponsored strategic investment funds (SIFs) now emerging in countries at all income levels. The World Bank Group and its partner, the Public Private Infrastructure Advisory Facility, work with FONSIS in an advisory role, and FONSIS provides input to the Bank’s research on SIFs. In the World Bank Group’s recently issued Climate Change Action Plan, SIFs feature as one of the tools to crowd in private capital to climate mitigation and adaptation projects.

Mr. Hott was in Washington last week for the Spring Meetings, and we caught up with him during a break in his schedule. Mr. Hott represents a new generation of African financial sector professionals and leaders, who have returned to opportunities at home after earning degrees at leading global universities and gaining extensive experience on Wall Street, in the City of London, and in other global financial centers. He was also nominated a Young Global Leader by the World Economic Forum.

Q. FONSIS has been doing some very interesting projects. Could you tell us about some of your signature investments?

 POLIMED (Pôles d’Infrastructures Médicales)
Pôles d’Infrastructures Médicales

One project that I think is innovative is our building and commercial operation of the POLIMED (Pôles d’Infrastructures Médicales) diagnostic center within the public hospital of M’Bour, a coastal city 70 kilometers from Dakar. The hospital itself couldn’t afford to buy the required advanced technological equipment, and we were asked to build and run the diagnostic center as a commercial operation, with the public doctors and technicians of the hospital providing the medical services to keep down patient fees. Since operations started at the end of December 2015, more than 4,000 patients have been diagnosed, and the financial results are looking good so far. We intend to replicate this model all over the country to upgrade our medical infrastructure.

Another interesting project is the 30 megawatt, €41 million, solar energy power plant Santhiou Mékhé, and a 9 km transmission line to the grid. We closed that deal this past February. We were approached by the project’s initial developer, and our role was to structure the financial side of the project, help finalize the power purchase agreement with the off-taker, reach out to potential investors, and negotiate the debt and equity contributions. We also put down about €1.0 million of our own capital as a cornerstone investor, to give the project credibility at the initial stage. We expect the plant to be producing electricity in late 2016. I think we’ve achieved a good result: about €40 of external equity and debt co-investment for every euro that we ourselves invested. In general, we aim to achieve a multiplier of around 10 on our own invested capital, but we achieved an exceptionally high multiplier in this case, as we managed to secure a debt/equity ratio of 80/20.

An innovative partnership for infrastructure in Brazil

Pablo Pereira dos Santos's picture

It is estimated that in order to close the gap in infrastructure, the Latin America and Caribbean (LAC) region requires an additional investment of $120 –$150 billion a year. However, given the current low levels of public investment, coupled with the fiscal challenges faced by the region and limited funding available from Multilateral Development Banks (MDBs), it is clear that private investment will play an important role in future years.

In 2014, the G-20 strengthened MDBs’ mandate to take concrete and practical steps to ensure that MDB-based project preparation facilities (PPFs) and other related initiatives collaborate to support governments by developing prioritized pipelines of economically viable and bankable infrastructure projects that can attract the private sector.


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