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PPPs

Averting a gas shortfall in Ukraine through a World Bank guarantee

Richard MacGeorge's picture


Photo: David Lawrence / World Bank Group

One September afternoon, my boss, Pankaj Gupta, popped his head into my office. He had some ideas about how the novel use of guarantees might help solve a type of problem we had not faced before. The Energy and Extractives Global Practice had received a request from Ukraine. The problem was the country was heading into the 2014/15 winter with a large gas shortfall.
 
These were not easy times for Ukraine, which was in the throes of armed conflict on its Eastern border. With an economy in turmoil, the credit rating agency, Standard & Poor's, had dropped Ukraine's credit rating two notches in the last year. The rating now languished at CCC, or very speculative and non-investment grade. This made finance, the life-blood of service delivery, difficult to access and expensive.

Kigali Water: Lessons from one of sub-Saharan Africa’s first water PPPs

Emilio Cattaneo's picture
This page in : Français  


Photo: People Image Studio | Shutterstock

This World Water Day, the Private Infrastructure Development Group (PIDG) is celebrating the success of the Kigali Bulk Water Project in Rwanda’s capital.
 
The large-scale water treatment plant, due for completion in 2020, will produce 40 megaliters of clean water per day, equivalent to one-third of Kigali's total supply. Water will be drawn from the Nyabarongo River to be treated before distributing a clean supply to up to 500,000 domestic, commercial, and industrial customers. Kigali Water is one of the first water projects to be developed using a public-private partnership (PPP) model in sub-Saharan Africa.

Breaking new ground: growing the digital economy through cyber risk reinsurance PPPs in EMDEs

Jinsuk Park's picture
Also available in: 한국어


Photo: ItNeverEnds | Pixabay Creative Commons

The digital economy has emerged as a key driver of growth and development across the world. According to Huawei and Oxford Economics, it accounted for 15.5% of global GDP in 2016 and this share is expected to increase to 24.3% by the year 2020—growing 2.5 times higher than the overall growth of the global economy.

However, along with rapidly increasing digitization, we are witnessing an exponential increase in cyber risks. These have potentially huge financial impacts that could place entire economies and societies in jeopardy. Such threats now typically include privacy breaches, cyber fraud, denial-of-service attacks, and cyber extortion. There are many examples just within the last few years. For instance, a cyber attack on Ukraine’s power grid in 2015 caused serious power outages, and in 2016, the Central Bank of Bangladesh lost $81 million in a cyber heist. That same year, more than 3.1 billion records were leaked globally.

While traditional approaches such as establishing computer emergency response teams and national cyber security agencies are important, there is a need to engage more actively with both public and private entities through new institutional structures, new technologies, and new business models. Cyber risk insurance is one tool that can help address these challenges.

새로운 패러다임 구축: 민관협력사업(PPP)모델 활용을 통한 개발도상국 사이버재보험 시장개발 및 디지털 경제성장

Jinsuk Park's picture
Also available in: English


Photo: ItNeverEnds | Pixabay Creative Commons

디지털 경제는 최근 글로벌 경제의 성장과 발전의 핵심 동력으로 부상하였다. 화웨이(Huawei)와 옥스퍼드 이코노믹스(Oxford Economics)의 공동연구에 따르면, 디지털 경제는 2016년에는 전 세계 GDP의 15.5%를 차지하였으며, 2020년에는 세계 경제 성장율 보다 2.5배 더 빠르게 성장하여 그 비율이 24.3%까지 증가할 것으로 전망된다.

하지만, 글로벌 경제의 급속한 디지털화에 따른 성장의 이면에는 사이버 리스크의  기하급수적인 증가도 자리하고 있다. 다양한 사이버리스크가 현실화 된다면 막대한 경제적 손실 발생에 따른 관련 국가의 경제와 사회를 큰 혼란에 빠뜨릴 수도 있다. 주요한 사이버 위협으로는 개인정보유출, 사이버사기, 서비스장애 및 사이버협박 등이 있다. 최근 사례를 살펴보면, 2015년 우크라이나 변전소에 대한 사이버 공격으로 인한 대규모 정전사태와 2016년 방글라데시 중앙은행의 8,100만 달러 해킹 도난사례가 있다. 2016년 전세계적으로 한해에만  31억 건 이상의 기록이 유출된 것으로 파악된다.

각 국가 차원의 사이버 보안 기관 및 사이버사고 대응팀 설립 등 기존의 접근방식도 중요하지만, 공공 부문과 민간 부문이 공동으로 필요한 제도를 구축하고 최적의 기술을 활용할 수 있는 지속가능한 비즈니스 모델을 제시하는 새로운 솔루션이 필요한 시점이다. 사이버 리스크 보험은 이와 같은 과제를 해결하는 데 가장 적합한 해결책이다.

Behold the White Knights! New research on institutional investor participation in financing EMDE infrastructure

Abha Joshi-Ghani's picture


Photo: Grzegorz Zdanowski / Pexels Creative Commons

Some regard institutional investors—with their deep pockets—as the white knights filling the huge investment gaps in infrastructure development in emerging markets and developing economies (EMDEs). The IMF estimates that some 100 trillion dollars are held by pension funds, sovereign wealth funds, mutual funds, and other institutional investors. Unquestionably, the long-term nature of their liabilities matches the long-term financing requirements of infrastructure projects. So, it’s no surprise that institutional investors are seen as the white knights of infrastructure finance.

Harnessing the Nile’s potential through private finance

Arsène Aimé H. Mukubwa's picture


Photo: Jorge Láscar | Flickr Creative Commons

The potential economic benefit from the cooperative use of the Nile’s water is estimated to be worth well over $11 billion—from irrigation and hydropower generation alone. But being able to harness those benefits is a far reach; the Nile Basin—a vital source of drinking water, irrigation, hydropower and transport—has a growing need for infrastructure investments to attain the full potential of this resource. Many of these infrastructure investments need to be coordinated between the basin’s 11 countries to ensure they are creating mutual benefits and are not causing harm to neighboring countries.

The Nile Equatorial Lakes Subsidiary Action Program - Coordination Unit (NELSAP-CU), one of the Nile Basin Initiative’s two investment programs, plays a prominent role in the region’s development. NELSAP supports poverty alleviation, economic growth, and the reversal of environmental degradation in the sub-region through cooperative development and water management. Between 2005 and 2015, we mobilized $90 million of cumulative finance for pre-investment programs (e.g. the Lake Edward and Albert Fisheries Project) and $930 million for investment projects (e.g. the Regional Rusumo Falls Hydroelectric Project).

This International Women’s Day: let’s design infrastructure better

Caren Grown's picture


Photo: Carol Mitchell | Flickr Creative Commons

As the backbone of development, infrastructure provides vital support for the twin goals of poverty reduction and shared prosperity. Considering the different needs, roles, and responsibilities of men and women in infrastructure design makes the achievement of these goals more sustainable.

Women and men face constraints both as beneficiaries and producers of infrastructure services. For example, there can be inequitable access to roads, financing for electricity connections, or clean water. There are also inequities in the infrastructure business value chain: Do utilities have a balance of women and men on technical and leadership teams? Is there diversity on boards, with regulators or policy makers? Are women-owned firms in supply chains?

The next Costa Rica? PPPs in Nicaragua are making that possible

Bernardo Weaver's picture

Photo: Devin Poolman | Flickr Creative Commons

Nicaragua’s Public-Private Partnerships (PPP) program is taking off. In less than a year, the country has moved quickly, overcoming hurdles to produce a PPP law, supporting regulations, and a well-staffed PPP unit. Its first deals are getting closer to fruition—the World Bank Group (WBG) team working on PPPs in Central America has just received four pre-feasibility studies for its top projects. Two of these are moving fresh out of the pipeline—the Pacific coastal toll road and a cruise ship terminal and marina in San Juan del Sur.

Why did the elephant cross the road?

Sunny Kaplan's picture


Photo: Phubadee Na Songkhla / Shutterstock

In the early 1950s, carving out a road in the newly-created Tsavo National Park in Kenya involved “hacking through scrubland,” according to Dame Daphne Sheldrick in her memoir, Love, Life, and Elephants. Founder of the David Sheldrick Wildlife Trust, an organization that rescues orphaned elephants and rhinos, she describes the park landscape as “inhospitable country, covered in an entanglement of dense scrub vegetation infested with tsetse fly...” but “known for its diversity of indigenous species, including fearsome lions, breeding herds of elephants, and thousands of black rhinos.”
 
Today, the two-lane Mombasa-Nairobi highway (A109) dissects the park to form Tsavo East and Tsavo West. This causes problems for wildlife. Richard Leakey, Chairman of Kenya’s Wildlife Service, says that 18 elephants have been killed from collisions with trucks, and other wildlife become roadkill on a regular basis.

日本の事例に学ぶ:インフラの強靭化に向けた官民パートナーシップ(PPP)

Sanae Sasamori's picture
このページの言語: English | Español 

2011年の震災後、営業を再開した仙台国際空港
出典:PIXTA

2011年3月、東日本大震災が日本を襲い、犠牲者と行方不明者の数は2万人近くにおよびました。宮城県の県庁所在地で東北地方の経済の中心である仙台は、震災により大きな被害を受けました。約50万人の市民が水道を利用できなくなり、仙台市の下水処理場は津波により水没しました。また津波により東北地方沿岸の鉄道施設325㎞が損壊し、高速道路約100㎞が浸水したことで、支援が必要な内陸部の被災地への交通手段は瞬時にして断たれました。

震災から4年後、地震と津波からの復興の努力が続く中、民間企業コンソーシアムが30年間の仙台空港の運営権(コンセッション)を取得し、国内で初めて民間企業が運営する空港が誕生しました。この成功は政策立案者と官民パートナーシップ(PPP)の関係者に驚きを持って迎えられました。民間の事業者がどのようにして、自然災害の多い地域での長期にわたる投資の意思決定を行なうことができたのでしょうか。
 

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