Photo Credit: Flickr user highwaysagency
Infrastructure often makes headlines – and the sentiment is not always positive. Major projects must navigate a minefield of potential problems. One that is frequently overlooked is how the local community will react to the physical and environmental disruption that comes with major construction projects.
Achieving consensus and winning the ‘hearts and minds’ of stakeholders and affected communities for the construction of major infrastructure schemes can be challenging, but it is essential to deliver a successful project that benefits everyone in the community.
Gary Sargent, an engagement director from CJ Associates, is involved in a two-year consultation program for a major highway scheme in the United Kingdom and helped the authority design an integrated stakeholder engagement, communications and consultation strategy.
Here is Sargent’s advice:
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.
One of my favorite songs when I was growing up was John Lennon’s “Imagine.” A few months ago, UNICEF created a project around it to highlight the plight of millions of refugee children. As 2016 drew to a close, I couldn’t help but imagine a world with high-quality, affordable, sustainable, well-maintained infrastructure services for everyone.
I’m not sure a video of infrastructure projects set to “Imagine” would fire people up as much as the UNICEF video does. But there is value in reflecting on what we have accomplished in 2016, and what we might hope for and imagine in 2017, to bring this vision closer to reality for millions of people.
- Public Private Partnerships
- Public private partnership
- Labor and Social Protection
- Agriculture and Rural Development
- Climate Change
- Financial Sector
- Global Economy
- Information and Communication Technologies
- Law and Regulation
- Private Sector Development
- Public Sector and Governance
- Urban Development
- The World Region
One of the prevailing notions about PPPs is that upfront costs are wholly paid for by the private sector, allowing the public to spread their costs (whether as users or through taxes) throughout the life of the project. However, this is a myth – governments, multilateral development banks (MDBs), and bilateral financing institutions all play strong roles in the various stages of financing PPPs. Just what kind of role, and how big, requires looking at the data.
Fortunately, now for the first time, it is possible to view the breakdown of financing sources for PPPs in low- and middle-income countries on the PPI Database. Accompanying the data is a recently released note that analyzes the sources of financing for 2015 PPP projects in these countries. The findings indicate that, in fact, financing for PPPs comes from a diverse mix of sources.
The Sources of Financing Note, available on the PPI Database website, breaks down the data on how upfront capital costs in PPPs in the dataset are financed globally, and by region and sector.
“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us— in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.”
- Charles Dickens, A Tale of Two Cities
Photo Credit: Thomas Hawk via Flickr Creative Commons
I love the TV show “The Big Bang Theory.” It gives a sympathetic view of geeks, where the nerdy guy gets the beautiful girl—I just wish it had been made when I was in high school. I was the geek, without the chic. At the mercy of the big, macho kids, who seemed to have gone through puberty years before I even knew what the word meant.
I thought I had left all of that in high school, but there is a tendency in PPP to perpetuate the macho stuff. Let’s take toll roads as an example. A few frustratingly macho myths about toll roads that only a geek can bust:
Photo Credit: The Maersk Group
Almost everything you buy—no matter how organic or natural—has an impact on the environment. Why? Because everything made and sold has to be transported, and transportation almost always means burning fossil fuels.
Editor's Note: The World Bank Group is committed to helping governments make informed decisions about improving access to and quality of infrastructure services, including using Public-Private Partnerships (PPPs) as a delivery option when appropriate. One of the PPP Blog’s main goals is to enhance the understanding of PPPs while eliminating misconceptions about them, ultimately enabling better decision making throughout every stage of the PPP cycle. To that end, the “Mythbusters” series, authored by PPP professionals, addresses and clarifies widely-held misunderstandings.
Like the Sirens whose voices lured mariners to their death, myths can undermine the best projects. The myths surrounding airport public-private partnerships are particularly distracting, and can sidetrack policymakers from the opportunities these transactions offer. But an open mind, commercial awareness, and the aid of experienced advisers can cut through the clamor.
Photo Credit: hans-johnson via Flickr Creative Commons
A recent report by PwC on the outlook for global infrastructure spending predicts that by 2020, annual global infrastructure spending will reach $5.3 trillion, up from an estimated $4.3 trillion in 2015. This represents a global spending growth of 5% per annum doubling the low rates of growth of just 2% expected this year.