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Governance

Let’s realize the potential of PPPs  

Malcolm Morley's picture


Photo: rawpixel.com | Pexels

If the potential of public-private partnerships (PPPs) is to be realized, joint working within the public sector and between the public and private sectors needs to be improved. 

Experience across the world has consistently identified that organizations find it difficult to effectively work together both within and across sectors. Issues of organizational objectives and priorities, individual and organizational sovereignty, status, power, resources, and culture act as barriers. This too often means that the potential outputs and outcomes from PPPs are not maximized.

How data can benefit Nepal

Ravi Kumar's picture
School children in Nepal. Graphic: Nicholas Nam/World Bank

Thirty years ago, almost everyone in Nepal — except for a few professionals and business people — would have been classified as poor by any international standard.

In 2010, by contrast, 15 percent of Nepalis were considered poor.

Without a doubt, Nepal has made progress.

The challenges of bringing development to the remote areas of Colombia

Erwin de Nys's picture


In 2017-18 we visited the Meta department in Colombia on multiple occasions. Located right where Colombia’s Llanos Orientales (Eastern Plains) disappear south into the vastness of the Amazon rainforest, this area of the size of Belgium, the Netherlands, and Luxembourg combined is a magical spot in the world’s second most biodiverse country.
 
Meta is not a poor region - it boasts some of the nation’s largest oil reserves. Highly fertile soil and multiple thermal floors have created a boom in agribusiness in recent years, while its geographic proximity to Colombia’s capital has more recently led to a thriving tourism industry.
 
Despite having made significant progress on many fronts, this region still faces critical challenges. On our last visit, we had the opportunity to chat for hours with several small-scale farmers from south-western Meta – a sub-region where economic development has been seriously damaged by the cultivation of coca leaf, the raw material used to produce cocaine.
 

Honduras launches new PPP disclosure portal

Giorgio Valentini's picture



This past spring, Honduras took an important step in improving transparency and accountability with respect to Public-Private Partnerships (PPP) by launching an online platform that allows public access to detailed information about these activities.

The portal, created with the support of the World Bank and in coordination with the Construction Sector Transparency Initiative (CoST), allows access to information related to PPP projects through their entire project cycle. This is a significant achievement that promotes transparency in PPP planning, procurement, implementation and monitoring in Honduras, by making information easily accessible to citizens.

How data can benefit Nepal

Ravi Kumar's picture

Thirty years ago, almost everyone in Nepal —except for a few professionals and business people—would have been classified as poor by any reasonable international standard.

In 2010, by contrast, 15 percent of Nepalis were considered poor.

Without a doubt, Nepal has made progress.

Now the 761 newly formed—local, provincial, and federal—governments in Nepal aim to provide all Nepalis access to essential public services, eliminate poverty, reduce gender and ethnic inequalities, and ensure environmental sustainability

The hope is that Nepal will reach middle-income status by 2030.

But tracking and monitoring progress against the goals articulated in Nepal’s development vision as well as the global Sustainable Development Goals (SDGs) impose significant demands on the country.

Unfortunately, the absence of disaggregated data by geography, sex, age, social groups and sub-national level, and more poses an enormous challenge for all levels of governments to properly plan and budget.

As such, Nepal needs to urgently invest in its data and statistics capacity.

Data is the currency for decision making and helps us understand what works and what doesn’t.

For instance, let’s consider a province in Nepal that is keen to improve learning for its public schools’ students.

Without data on students, their gender, age, academic performance, or the number of schools and teachers, the provincial government cannot elaborate an informed plan for its students.

But were policymakers able to access timely and sufficient data, they could decide whether more teachers or more schools are needed. Without data, decisions are just like shooting in the dark and hoping for the best.   

How can we help cities provide the building blocks for future growth?

Sameh Wahba's picture
Also available in: Español | Français 

Photo: Ngoc Tran / Shutterstock

Basic infrastructure makes all the difference in the lives of people. Sometimes a road is all it takes…

Access to clean drinking water and sanitation can improve children’s health, reduce waterborne disease, and lower the risk of stunting.

Street lighting can improve the safety of a community, reduce gender-based violence, and add productive hours for shops and economic activities, which can help people escape poverty.

A paved road can lead to a world of possibilities for small business owners, increasing access to additional markets and suppliers, as well as opportunities to grow their businesses.

The urban infrastructure finance gap

Cities already account for approximately 70-80 percent of the world’s economic growth, and this will only increase as cities continue to grow. In the next 35 years, the population in cities is estimated to expand by an additional 2.5 billion people, almost double the population of China. As a vital component for connectivity, public health, social welfare, and economic development, infrastructure in all its forms – basic, social, and economic – is critical for the anticipated urban growth.

Globally, the annual investment required to cover the gap for resilient infrastructure is estimated at $4.5-$5.4 trillion. Cities will need partners to help them provide these building blocks for the future. The public sector cannot address these crucial needs alone, and overall official development assistance barely totals three percent of this amount. Cities should begin looking toward innovative financing options and to the private sector.

Using guarantees to drive efficiency gains in road PPPs by reducing costs

Lincoln Flor's picture


Public-Private Partnerships (PPP) in transport infrastructure can offer significant efficiency gains compared to public procurement options—in the right circumstances. The gains accrue from allocating to the private sector those risks they are better able to handle than the public sector, such as those associated with construction costs.  

Data backs this up: findings in Construction Risk in Infrastructure Project Finance from EDHEC show that for a large number of transport infrastructure PPP projects, (including roads), construction overruns are significantly lower at 3.3 percent on average compared to public procurement projects, with a 26.7 percent overrun average.

Join Us for “States of Disruption” to Explore the Role of Governance in a Fast-Changing World!

Nicholas Nam's picture



There is no denying that governments across the world today are facing increasingly complex pressures that are altering the world in which we live – fragility, conflict and violence; large migration flows; the amplifying impact of technology; tensions in managing scarce resources; and more complicated service provision needs. These pressures are re-defining the relationship between citizens and the state and leaving many asking what the role of government in the 21st century should be.

Getting value for money: Creating an automated market place for farmers in Pakistan

Khalid Bin Anjum's picture
NANKANA SAHIB: PAKISTAN. Photo: Visual News Associates / World Bank

The challenge with procuring a high volume of low-value goods is keeping the transaction costs down while still delivering the value-for-money trifecta: low cost, at the required quality, and on time. Alibaba, Amazon, eBay and many other online platforms do this for sellers by setting up a “honey pot” market place that attracts buyers and then largely automates the rest of the procurement, delivery and feedback processes. An e-marketplace can help make the agricultural sector more efficient in Pakistan.

More and better infrastructure services: Let’s look at governance; financing will follow

Abha Joshi-Ghani and Ian Hawkesworth's picture


Photo: AhmadArdity | Pixabay 

There are many reasons why infrastructure projects often fail to materialize, meet their timeframe, budget, or service delivery objectives. Important examples include weak and insufficient planning and assessment of affordability as well as uncertainty over the rules of the game. 

These issues severely constrain the ability of governments to mobilize finance to deliver key services that help achieve the Sustainable Development Goals (SDGs). The World Bank estimates that achieving the SDGs would require some $4.5 trillion in public and private investment by 2030.

In light of the financing requirements for the SDGs, the World Bank has developed the Maximizing Finance for Development (MFD) approach to help governments and other stakeholders crowd in private sector solutions while optimizing the use of scarce public resources. The success of the MFD initiative will depend in large measure on whether good infrastructure governance practices and tools are adopted.
 
The World Bank Group and the African Development Bank, with support from key development partners, have organized the second Infrastructure Governance Roundtable, to be held in Abidjan, Cote d’Ivoire, June 21-22, to foster a robust dialogue on how best to improve infrastructure governance practices to create sustainable infrastructure, and to assist with building capacity in this area.


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