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Middle East and North Africa

2018 Dubai MENA PPP Forum: Key takeaways

David Baxter's picture



Against a milieu of changing PPP enabling environments in the Middle East and North Africa (MENA), a public-private partnership (PPP) forum took place last month in Dubai focusing on anchoring partnerships and unlocking the potential of PPPs in delivering the national visions that will drive MENA’s future economic growth.

When elephants fight, it is the grass that suffers

Mark Moseley's picture


Photo: shplendid | Flickr Creative Commons

Talk of trade tariffs and heightened geopolitical tensions are dominating news headlines recently. As developed economies consider escalating protectionist policies, it’s easy to forget about the situation many emerging markets face.

As outlined in the World Bank’s Global Economic Prospects report released in June this year, protectionist policies would affect emerging market and developing economies (EMDEs) more severely than advanced economies. And this is at a time where increased investment and spending in EMDEs, including in infrastructure, is sorely needed.

Yes they can: SMEs filling the infrastructure gap in fragile countries

Yolanda Tayler's picture


Photo: Trocaire | Flickr Creative Commons

In war-torn post-1991 Somalia, running water was a scarce commodity, to the misfortune of millions of people. Members of local communities rose to the occasion, “pooling” consortia of companies to fill the gap in water provisions. Eight public-private partnerships (PPPs) were formed through these consortia, benefiting 70,000 people in the Puntland and Somaliland regions of the country.  

As demonstrated in the Somalia case, infrastructure needs are substantial in fragility, conflict and violence-affected (FCV) contexts—especially for recovery and reconstruction in war-torn areas. Yet often there is insufficient public sector funding to address such needs, compounded by lack of interest on the part of large private sector firms, who may not even be on the scene. In such FCV contexts, small and medium enterprises (SMEs), making up a substantial share of the private sector, may be critical to filling the infrastructure services gap.

How is rated infrastructure evolving? It’s expanding.

Mar Beltran's picture


Photo: Matej Kastelic / Shutterstock.com

Over the past two decades, rated infrastructure worldwide has grown threefold. Some periods of flatter growth aside, the rise of infrastructure lending for both project finance and corporates has helped steer the sector’s development.

All the while, the infrastructure sector has developed a more robust risk profile compared to companies primarily involved in the production of goods, otherwise known as non-financial corporates (NFCs). And, by most measures, infrastructure credits rated by S&P Global Ratings have displayed lower default rates and ratings volatility, and higher recovery prospects compared to NFCs.

Can Islamic finance unlock funds for development? It already is

Amadou Thierno Diallo's picture

Also available in  العربية | Français



Two years in the making, last week the Islamic Development Bank Group (IsDBG) and the World Bank Group officially launched the landmark report Mobilizing Islamic Finance for Infrastructure Public-Private Partnerships at a discussion broadcast online from Washington, D.C. We illustrated that, through partnerships, the power of Islamic finance can be instrumental in unlocking financial resources necessary to meet the tremendous demand for critical infrastructure.
 
In fact, infrastructure PPPs funded with Islamic finance have proliferated in the Middle East, and have flourished in other countries throughout Africa and Asia. Both of our institutions are committed to leverage our competitive advantages, achieve effective interventions, and yield measurable results in scaling up and broadening the use of Islamic finance.

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.  

تقرير محكم التوقيت عن تعبئة التمويل الإسلامي للشراكات بين القطاعين العام والخاص

Clive Harris's picture
هذه المدونة متوفرة باللغات التالية: Français | English

Photo: Artit Wongpradu / Shutterstock.com

 

شهد التمويل الإسلامي نموا سريعا في جميع أنحاء العالم. ووفقا لتقرير صدر مؤخرا عن مجلس الخدمات المالية الإسلامية، فإن سوق التمويل الإسلامي يبلغ حجمها حاليا حوالي 1.9 تريليون دولار. مع هذا النمو، تم توسيع تطبيقه في العديد من المجالات -التجارة والعقارات والتصنيع والخدمات المصرفية والبنية التحتية، وغير ذلك كثير.
 
ومع ذلك، لا يزال التمويل الإسلامي سوقا غير مستغل نسبيا لتمويل الشراكة بين القطاعين العام والخاص، مما يجعل التقرير الصادر حديثا بعنوان تعبئة التمويل الإسلامي لشراكات البنية التحتية بين القطاعين العام والخاص مصدرا مهما، وخاصة للحكومات والممارسين.
 

The Global Infrastructure Facility: What is it really and what have we been doing?

Towfiqua Hoque's picture

Photo: Ashim D'silva | Unsplash 

From “Billions to Trillions”, to the Hamburg Principles and Ambitions, to Maximizing Finance for Development (MFD), mobilizing private capital to deliver on the sustainable development agenda is in the spotlight. Realizing that constrained public and multilateral development bank (MDB) funding cannot fully address the critical challenges that developing nations face, the World Bank Group is pursuing private sector solutions whenever they can help achieve development goals, in order to reserve scarce public finance for when it’s needed most. This is especially true in the delivery of infrastructure.
 

Looking back: Was the Queen Alia International Airport PPP a success?

Alexandre Leigh's picture



Public-private partnership (PPP) practitioners are sometimes guilty of thinking that signing the deal is the end of the story. You can’t blame them, really. Making a PPP work is a long-term process with a lot of players involved, each with his or her own priorities. Detailed technical, economic, and environmental and social reviews must be conducted to make sure the project is feasible and bankable. Often, sector reforms are required. Stakeholders – including the public – must be kept fully informed. The competitive bid, critical to any PPP, must be fully transparent so nobody will doubt the legitimacy of the outcome. It’s a long, hard slog to the end, and I can’t blame PPP practitioners from wearily planting the flag, declaring victory, and moving on.
 
But the signing is not the end; it is the beginning. And you can’t really declare success until the PPP is delivering real results for people. Sometimes, a follow-up PPP adds a new phase to a project, and sometimes new players are brought in. In any case, it’s worth going back and examining the results of PPP projects to see what happened and extract valuable lessons.

Three common design fails in infrastructure PPP projects: An engineer’s perspective

Ahmed Shaukat's picture
Photo Credit: Whity via Flickr
As an engineer on large-scale infrastructure PPP projects, I typically get involved after the advisory portion of the transaction is completed. This has given me some valuable insights. For example, I worked on a major airport in the Middle East, where the lessons we learned on the engineering side would greatly benefit similar projects as early as the advisory phase.

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