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December 2016

Helping PPP practitioners connect: the Asia PPP Practitioners Network

Mark Moseley's picture



Interest in Public-Private Partnerships (PPPs) is gaining momentum in Asia. Strong economic development and increasing urbanization have sharply increased demand for roads, bridges, and airports, as well as energy, water, and sanitation. As governments realize they do not have the financial resources necessary to meet these infrastructure needs, many have sought partnerships with the private sector for investment, technical expertise, and management skills. This, in turn, has made the Asia PPP Practitioners Network (APN) – a regional Asian forum for PPP practitioners – an important and relevant event for governments, corporations, and PPP experts. The most recent gathering took place in Seoul from November 30 to December 2, 2016.
 
The 2016 APN Conference brought together PPP practitioners from more than 12 countries in the Asia-Pacific region, including both jurisdictions with extensive PPP experience – such as the Philippines – and states that have only recently embarked on their PPP programs – such as Myanmar. The discussions were detailed and enriching, with participants actively sharing a wide variety of viewpoints and lessons learned.
 

Acting it out first: Building capacity for PPPs in Kenya through role-playing and certification training

Samuel Baiya's picture


Photo Credit: DEMOSH via Flickr Creative Commons

It turns out that airplane pilots and PPP practitioners now share a common training practice to sharpen their skills: simulation exercises.

Kenya is in the process of launching a number of PPPs, and conducting capacity building in the Ministry of Finance PPP unit and within the various implementing agencies is key to preparing professionals and designing and implementing successful PPP projects.

In September 2016, the Public-Private Infrastructure Advisory Facility (PPIAF) conducted two innovative events in Kenya to build the capacity of PPP players at the national and sector levels. The first was the PPP simulation game funded through the PPIAF knowledge proposals in partnership with the Dutch Government. This was the second in a series of the PPIAF-funded activities, following a similar simulation training carried out in Astana, Kazakhstan. The training focused on post-contract monitoring and was offered to the Kenyan PPP unit as well as implementing agencies that are close to launching their PPP projects.

Need healthcare in India? Meghalaya is the place for you.

Pranav Mohan's picture



Imagine you fall ill or have a serious accident. You survive, but to recover you need extensive medical care. The problem? You don’t have insurance and have to pay out of pocket. Your life savings are quickly drained away, as are your dreams. Your children lose hope for higher education; your well-researched business plan becomes a work of fiction.

Building sustainable infrastructure one click at a time

Mark Jamison's picture


Photo Credit: United Nations

Development of infrastructure services is often a central feature for rebuilding fragile and conflict affected states (FCSs). One of the reasons is that infrastructure is often devastated by conflict, making provision of water, power, communications and transportation priorities for recovery efforts. Another reason is that equitable distribution of services may be an important feature of a peace agreement and any appearance of unfairness could spark renewed unrest. Whatever the motivation, without proper planning for governance, the development can falter.
 
There are two governance challenges with infrastructure in FCSs. One is that the urgency to provide service sometimes overshadows developing systems that can easily transition from something quickly built to infrastructure with sound governance that grows and matures as the country progresses. Another challenge is establishing regulations that encourage investment by protecting property rights. And given the diversity of FCSs situations, there is no one-size-fits-all answer.
 
How can development professionals advance good infrastructure governance amongst the turbulence and urgency of infrastructure recovery in FCSs? PPIAF and the Public Utility Research Center (PURC) at the University of Florida recently launched a web portal to assist in this work.

PPPs and government balance sheets: clarifying EU rules

Julia Kennedy's picture


Photo Credit: Pedro Ribeiro Simões via Flickr Creative Commons 

Should PPPs in the European Union be included in government deficit and debt figures? A new publication provides guidance for PPP practitioners.

A public-private partnership (PPP) is usually viewed in the context of a single infrastructure or public service project. But PPPs are also part of a bigger economic picture, one that includes governments’ finances.

In the European Union (EU), member states are bound by rules that determine whether or not PPP investments may be excluded from government deficit and debt figures. The EU’s statistical office, Eurostat, applies and enforces these rules. In certain cases, the deficit and debt impact of applying the Eurostat rules has been a factor influencing EU governments’ decisions to procure projects as PPPs.

How are PPPs really financed?

Jenny Chao's picture



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.

A tale of… cities

Jenny Chao's picture

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

Eight steps to brightening Bhubaneswar

Sumeet Shukla's picture


Photo Credit: eopath via Flickr Creative Commons

No one in the municipal authority of Bhubaneswar, the capital of the Indian state of Odisha, was in the dark about its street lighting problem – though as years went by and the issue worsened, more and more people were literally in the dark. In this busy city, the main roads were well lit, but smaller streets and residential areas were lit with only dim patchy light or had no lights at all, which threatened residents’ safety, curtailed evening transportation and activities, and led to constant complaints from the public. Moreover, energy consumption for street lighting was extremely high, straining the city’s finances.

Mythbusters: Overcoming macho tendencies in funding toll roads

Jeff Delmon's picture


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: