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Diciembre 2012

El propósito de América Latina para el 2013: seguir avanzando

Hasan Tuluy's picture
How valuable are lessons of experience in PPPs from other countries? Legislative and regulatory environments differ, as do market conditions and the overall investment climate. So replicating a successful PPP in another country isn’t a simple as following the same steps or using similar contract or tender documents.
 
But that doesn’t mean lessons cannot be transferred. Even if conditions vary, the underlying principles of PPPs remain the same regardless of where it is executed. For example, a PPP is always a long-term contractual agreement between a government entity and a private company; it must be financially sound if it is to work; and risks must be identified, mitigated and allocated effectively. The details of how these principles are applied will vary depending on the regulatory and market conditions of each country. But the examples remain valid nonetheless.
 
In Ukraine, PPPs have been slow to catch on, initially because the business climate was so weak. The country’s neighbors were all more successful at implementing PPPs: Poland has 65 PPP projects underway according to the Ministry of Economy’s PPP database, and Moldova’s first PPP established a radiology and diagnostic imaging center. But none of Ukraine’s neighbors have done as well with PPPs as its Black Sea neighbor, Turkey.
 
Turkey is a regional PPP powerhouse. The 2014 PPI Global Update, which provides information on private infrastructure investment in emerging markets, puts Turkey in second place globally for the second year in a row with US$12.5 billion. In 2014 alone, 17 new projects were launched in mainly in power and transport. Not surprisingly, Ukrainian officials have been looking with great interest to Turkey’s success.

Una mirada al 2012: Resumen anual

Carlos Ferreyra's picture

Nutrición en América Latina: nuevo menú de políticas públicas para mejorar las respuestas de emergencia

Marie Chantal Messier's picture
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.
 
A new waiting area at Montego Bay's
Sangster International Airport.
Photo: Milton Correa/flickr

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.

Aprender rápido de los fracasos

Jim Yong Kim's picture

One of the most storied topics in agricultural economics, dating back to Chayanov’s work on Russian peasants published nearly a century ago, is the inverse relationship between scale (in terms of farm or plot size) and (land) productivity - commonly known as the IR.

Gestión de riesgos para el desarrollo

Kaushik Basu's picture

This is the second in this year’s series of posts by PhD students on the job market. Reminder that submissions close tomorrow at noon.

When I was in school, I used to skip some classes; my parents probably never learned about it (at least until this blog post). Now imagine there was a system in place to tell my parents how often I skipped classes in the previous weeks. When Nina’s parents get a message pointing out that she missed school yesterday, while they learn at no cost that her behavior was not in line with their expectations, they may also realize that attendance is an important dimension of their daughter’s behavior to which they should attend moving forward. Therefore, informing parents about their child’s attendance, for instance, might also draw their attention to the importance of attending class, increasing their awareness about monitoring benefits. This is particularly relevant in face of the evidence on how poverty captures attention (Mani et al., 2013), and on how, given limited attention, individuals may fail to learn from dimensions they do not notice (Hanna et al., 2014). Therefore, while informing parents lowers monitoring costs – alleviating moral hazard and inducing better school outcomes, in line with parent’s objectives –, communication may also increase the salience of monitoring benefits. My job market paper investigates the mechanisms behind the effects of communication with parents.

Reunión de la AIF examina progresos y evalúa próximos pasos

Axel van Trotsenburg's picture

Inorganic fertilizer use by smallholder farmers is one way to boost soil fertility and associated crop-yields and farm incomes. Yet fertilizer use remains the lowest where yield increase is needed the most. Per the World Development Indicator database , inorganic fertilizer use averages 154 kgs/hectare in middle-income countries, while in low-income countries it is less than one-tenth this level at 13 kgs/hectare.  What is driving this situation? And are at times fiscally expensive programs, such as government subsidies, commonly used in low income countries, the right solution?