Prior to about 2005, for many tourists their Jamaican vacation was ruined at the last minute, by the hot and overcrowded conditions inside Montego Bay’s Sangster International Airport. Fast forward 10 years, and waiting for a flight at Sangster is an altogether more pleasant experience. The air conditioning actually works, and the whole environment is infinitely less stress-inducing than before.
What’s the difference? The private sector.
In 2003, the Government of Jamaica finally succeeded in doing what it had been trying to do for a decade: privatize Montego Bay Airport. A private sector consortium, led by Vancouver International Airport, quickly invested millions of dollars in expanding the terminal building, doubling the airport’s capacity and opening dozens of new retail spaces. Since then, the consortium has invested more than US$200 million on expansions and improvements to the airport, all of which has been entirely off the government’s balance sheet.
Jamaica has gone on to implement several more public-private partnerships (PPPs), with mixed results. The second phase of its ambitious highway construction program — the Mount Rosser Bypass — was recently opened, cutting a swath through miles of virgin territory. However, early indications are that traffic levels are not living up to expectations, probably due to the Bypass’ steep eight percent gradient, which is beyond the means of most Jamaican trucks and buses.
In the energy sector, Jamaica is completing three PPPs with a total of 115 megawatts of renewable energy (RE) capacity, putting the country on track to meet its RE target of 12.5 percent of generating capacity by the end of 2015. Lastly, the government is currently completing formalities for the sale of Kingston Container Terminal (KCT) to a consortium of CMA/CGM and China Merchant Marine, a transaction that is expected to result in a US$600 million capital expenditure program by the port’s new owners.
Here is a new paper I wrote that provides perspectives on patterns of public-private partnerships (PPPs) in infrastructure across time and space.
PPPs are a new term for old concepts. Much infrastructure started under private auspices. Then many governments nationalized the ventures.
Governments often push infrastructure providers to keep prices low. In emerging markets, the price of water covers maybe 30 percent of costs on average, that of electricity some 80 percent of costs. This renders public infrastructure ventures dependent on subsidies. When governments run into fiscal troubles, they often look again for PPPs, and price increases. As a result, PPPs keep making a comeback in most countries, but are not always loved.
The papal encyclical “on care for our common home” reflects the kind of insightful and decisive leadership that will be needed to reverse trends that will affect humanity’s capacity to feed itself and provide for collective well-being.The encyclical is not only a sobering call to address climate change, but also a manifesto for environmental stewardship and action. It touches on topics that we, as earth’s dominant species, need to urgently care about if we are to keep millions out of poverty today and tomorrow, and deliver on the rising expectations of a global middle class.
At the core of the encyclical is both a concern for the health of the planet and for the earth’s poor, reflected in a commitment to social values and integrity, environmental resilience, and economic inclusion.
The stock-taking begins, aptly, with pollution: “Some forms of pollution are part of people’s daily experience. Exposure to atmospheric pollutants produces a broad spectrum of health hazards, especially for the poor, and causes millions of premature deaths.” The World Bank’s latest edition of theLittle Green Data Book finds indeed that in low and middle-income countries, 86% of the residents are exposed to air pollution levels (measured in exposure particulate matter less than 2.5 microns in diameter) that exceed World Health Organization (WHO) guidelines. The WHO last year made headlines when it calculated that 7 million people had died prematurely from indoor and outdoor air pollution in 2012. From safer cookstoves in rural areas, to better air quality management in fast growing cities, this is an area where solutions are known and must be urgently applied.
Stephen Sobhani, Sesame Workshop's Vice President, International, and Junaid Ahmad, World Bank Group Senior Director for Water, wrote a blog for The Huffington Post. Read an excerpt below and continue reading on The Huffington Post.
A bright, green global ambassador for life-saving hygiene habits from Sesame Street -- the world's largest informal educator of children. Unprecedented investments in water and sanitation from the World Bank Group -- the world's largest development financier. What do Sesame Street and the World Bank Group have in common? Far more than you think...
In March we released the update from the Private Participation in Infrastructure (PPI) Database for the first six months of 2014, covering investment activity in energy, transport, and water and sanitation. The good news of a rebound of investment commitment from a decline in 2013 was noteworthy, alongside the heavy concentration of activity in Brazil.
The PPI Database’s 2014 full year update for these sectors has just been released, and it confirms the trends we began tracking for the first six months. Total investment in infrastructure commitments for projects with private participation in the energy, transport, and water and sanitation sectors increased six percent to $107.5 billion in 2014 from levels in the previous year. The total for 2014 is 91 percent of the five-year average for the period 2009-13, which is the fourth-highest level of investment commitment recorded – exceeded only by levels seen from 2010 through 2012.
This increase over 2013 was driven largely by activity in Brazil. Without Brazil, total investment commitments would have fallen by 18 percent, from $77.2 billion in 2013 to $63.4 billion in 2014. Although this is lower than H1 2014 (57%), Brazil’s large stake is a continuation of a recent trend.
The Latin America and the Caribbean (LAC) region saw $69 billion of investment commitments, or nearly 70 percent of the total for 2014. Three of the top five countries by investment commitments in 2014 were from LAC. The top five, in order, were Brazil, Turkey, Peru, Colombia, and India.
What will 2015 stand for? Only half-way through the year, it may be risky to make predictions. But 2015, a year in which the international community is supposed to forge new deals for climate action and sustainable development, should be a year rich in connections. A year in which the health of the planet is finally understood to be of central concern to the future of people. A year in which the management of natural resources – from fish stocks and fresh water, to fertile soil, forest habitats and the carbon in the atmosphere - is understood to have significant national, international and inter-generational consequences.
Awareness is certainly progressing. From the streets of Sao Paulo, Brazil - a country that hosts nothing less than the mighty Amazon River, to the farmlands of California, people are coming to the realization that resources such as water are not limitless. More and more businesses are looking at the security of their supply chains and the footprint of their operations with zeal fueled by self-interest. And countries seem poised to adopt Sustainable Development Goals that signal an understanding that economic, social and environmental issues are inherently interdependent.
Climate change, water shortages and other environmental crises are bringing home the message loud and clear: we need to connect the dots between human actions across the landscape and seascape, or the earth will cease to care for us. It will cease to grow food, to store water, to host fish and pollinators, to provide energy, medicine and timber. Changing temperatures will stress systems already overwhelmed by unsustainable patterns of production and consumption, while a growing middle class will further strain planetary boundaries.
How can we help economies develop better, for lasting poverty reduction and prosperity, within the limits of natural resources? How can we make more rational use of natural and financial resources to maximize social and economic benefits and reduce carbon emissions while increasing our resilience to climate extremes?
Deltas are often described as cradles of civilization. They are the testing grounds for early agriculture and the birthplace of hydraulic engineering as we attempted to shape the landscape to suit our needs.
Deltas are the unique result of the interaction of rivers and tidal processes resulting in the largest sedimentary deposits in the world. Although comprising only 5% of the land area, deltas have up to 10 times higher than average population—a number, which is increasing rapidly, especially for deltas in Asia.
Low lying, deltas are widely recognized as highly vulnerable to the impacts of climate change, particularly sea-level rise and changes in runoff, as well as being subject to stresses imposed by human modification of catchment and delta plain land use.
In December 2013, I was excited to receive funding through an Innovation Challenge Award to pilot water flow sensors in rural Tanzania, where the sustainability of rural water supply is a major development challenge. Approximately 38% of rural water points are not functioning properly. The sensor we wanted to develop would remotely monitor flow, making it easier to deliver operational information to the Ministry of Water’s water point mapping system.
The pilot brought one of the first 3D printers to Tanzania and we connected the American start-up WellDone International to the local non-governmental organization (NGO) Msabi. The project team implemented the gadget effectively, and my colleagues at the Water and Sanitation Program (WSP) and I navigated the procurement and implementation challenges. The pilot ended successfully in June of 2014 and we were proud of our achievement in bringing an innovative ICT solution to the Tanzanian rural water sector.
Water security is a major challenge for many countries, especially developing ones. The numbers tell a story of water resources under stress while competition for their use is increasing – by 2025, about 1.8 billion people will be living in regions or countries with absolute water scarcity. Clean water and adequate sanitation is still far from reach for many of the world’s poorest. At the same time, more water is needed to produce food and energy to satisfy the rising needs of the earth’s growing population.
By now, all of you must have heard of the massive earthquake and numerous aftershocks that have shaken Nepal over the last few days. As I am writing this, there is another tremor, 36 hours after the initial quake.
I am lucky that my family is safe. We have been fortunate. The majority of the people in Kathmandu are camped out in makeshift tents set up at various open spaces across the city — schools, army barracks and open fields. Some of these are coordinated by the rescue workers while others are set up by local residents. In some places, cremations happen only 5 meters away from where people sleep. The rain makes it very difficult in an already emotionally scarring time. This is just in Kathmandu.
Rural areas, where 80% of Nepalis live, are devastated. Entire villages have disappeared, buried under landslides triggered by the multiple quakes. Where they haven't, village houses, made mainly of mud and wood, have been reduced to dust, leaving people exposed to the elements. This is happening in some of the most difficult-to-reach hilly and mountainous terrain.
The number of casualties rises by the hour. Although my family and I are safe, many of my friends have lost relatives. Many people we know no longer have their houses. Our staff’s granddaughter needs to have her leg amputated. My "Didi" who took care of me as a child and is a second mother to me - lost her cousin who was crushed when their house collapsed. She really does not even know how to begin to mourn, knowing she still has to keep herself and many other safe.
The heritage we have lost is equally unimaginable. Centuries-old temples and palace squares are down in dust. Imagine the Due Torri in Bologna or the Washington Monument in Washington D.C. crumbling into rubble. The loss has been demoralizing.
The international community has reacted swiftly and relief efforts are in full swing. Hercules and IL-76 military aircrafts have been flying around the clock bringing in supplies, relief materials and workers. Kathmandu, a valley, has only two major highways connecting it to the rest of the world by land - one with China and one with India. Reports of damage to those highways has limited what can be brought into the city by land.
However, this is the just the beginning. The greatest challenges are yet to come. The monsoon season is just a month away. The wet monsoon months are synonymous with outbreaks of various diseases including dysentery, cholera, and hepatitis. With many people's homes destroyed, crowded camps will continue to provide refuge in the coming months. Such densely packed and crowded places with poor hygiene conditions will be ripe breeding grounds for diseases, especially in Kathmandu, where clean water is a scarcity even under normal circumstances.
Here’s my plea to everyone reading this.
The first response has been absolutely fantastic and lifted our spirits, but the support will need to be sustained over time. Relief will not only be limited to rebuilding but also preventing disease outbreaks, which will be more prevalent during the monsoon months.
We will need clean water, medication, waterproof clothes, and infrastructure support to build hygienic camps for people who have lost their homes.
Dealing with potential outbreaks will be more challenging with this devastation. Please support organizations involved in Nepal’s relief effort and also help build awareness around the impending health and sanitation issues.
It has been a very scary last few days. It has been the first time that I’ve had to confront my own mortality: sitting, waiting in the eerily quiet night knowing there will be another shock. But also overcoming this anxiety to help my family and everyone at home, and then, once they are safe, the rest of the country.