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Middle East and North Africa

Lessons from the West Bank’s first PPP: Fragile state + open mind

Malak Draz's picture


“If you want something new, you have to stop doing something old,”—good advice from innovation and management guru Peter F. Drucker. This approach was key to a PPP we coordinated in one of the world’s oldest areas, the West Bank.
 

Powering industry and jobs in Gaza through rooftop solar

Layali H. Abdeen's picture



Gaza is one of the most fragile places in the world. Its 2 million people have lived under a blockade since 2007. Crammed within an area of only 365 square kilometers—about the size of Philadelphia—its mostly young and educated population has few economic opportunities, with unemployment topping 50 percent. As GDP per capita falls, more than half of its people have sunk below the poverty line, with few opportunities for prosperity. Only donor support is keeping the economy afloat.

In addition to that, Gaza is constrained by limited access to power—with only four hours per day of electricity. That creates a huge burden to ordinary people, who are forced to plan around the power schedule. But the lack of power is also crushing the life out of the manufacturing sector, which previously served as a major source of employment in Gaza. So, can we in the international development community do something to address this problem?
 

Creating the second largest regional electricity market in the world

Waleed Alsuraih's picture


RecondOil | Flickr

Regional trade in electricity and other energy products can be a powerful force for market integration and sustainable development. In the Arab world, there are great potential benefits from increasing electricity trade beyond its current, very low level. The potential shared value of trade in electricity in 2020–2030 is estimated at $12 billion. We can expect even greater savings, about $44 billion, from more optimal power systems operation, with a major role for gas as the main fuel for power generation, displacing expensive liquid fuels.

Scaling the use of Islamic finance for infrastructure: MDBs can help

Sara Ahmed and Ashraf Bouajina's picture



Using Islamic finance for infrastructure development attracted more attention recently in the quest to maximize finance for development.

At the recent World Bank-IMF Annual Meetings in Bali, the World Bank and the Islamic Development Bank (IsDB) co-hosted a symposium on Islamic infrastructure finance, building on the institutions’ strategic partnership. As we note in Mobilizing Islamic Finance for Infrastructure Public-Private Partnerships, the asset-backed, ring-fenced, and project-specific nature of Islamic finance structures and their emphasis on sharing risks make them a natural fit for infrastructure public-private partnerships (PPPs).

Ready to launch: The World Association of PPP Units & PPP Professionals

Ziad Hayek's picture



There is hardly a government today that does not consider some sort of public-private partnership (PPP) to be relevant and integral to its development strategy.

Everywhere you go now, there are individuals and institutions dealing with PPP policy and all the complex aspects of tendering, implementing, and supervising PPP projects. A specialization has arisen, which has become a career for many people and an industry for many institutions, public and private. 

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.

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