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.
Public Private Partnerships
Like winter and summer solstices of investment cycles, every six months we take stock of how much private participation in infrastructure has come to financial close across emerging markets. From Mozambique to Moldova, Chile to China—in power, water, transport, and the backbone of telecom services—the World Bank Group tracks every new public-private partnership (PPP), privatization, auction, concession, lease, and management contract through our PPI Database.
Con disculpas a Charles Dickens
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.
Photo: totojang1977 / Shutterstock.com
In my last blog, I compared Public-Private Partnerships (PPPs) with marriage. I had explained that, though very different, the public and private can come together as they each possess characteristics beneficial to the other. Great in theory, but often difficult in practice.
Critics of PPPs abound and listing them here would be impractical. But whether they are auditors, civil society or within the World Bank Group, critics help us improve. We try to respond to our critics, including through blogs such as this one.
The protection of real property rights and improving the efficiency of land and property markets are key pillars in a modern, well-functioning economy. Over the last 30 years, many countries have initiated programs to issue land titles for all properties, improve the performance of land administration services, automate land information systems, and integrate them with ongoing e-government and e-service programs.
The World Bank, often with other development partners, has provided more than $1.5 billion in grants, credit and loans to more than 50 countries to support the implementation of such programs. Other bilateral and multi-lateral development partners have also provided substantial funding and technical assistance to many countries.
Most of us carry out research and report our findings with the expectation—or at least a hope—of an audience.
Yet fewer amongst us are familiar with our audience, even though their feedback may help us improve our work.
We, the team behind the Private Participation in Infrastructure (PPI) Database—the most comprehensive database of private investments in infrastructure in the developing world—continue to strengthen the database and our ensuing analyses. Learning more about our audience is an important component of these efforts.
Photo: Magnus D | Flickr Creative Commons
The issue of bankability of infrastructure projects has long been a topic of discussion by the development and investors’ communities and is one of the key bottlenecks in attracting private capital to meet the global infrastructure gap and to provide millions of people with the key services they lack.
Under German presidency, the Business 20 (B20)—a platform that enables the global business community to contribute to international policy discussions—submitted 20 recommendations to Group of Twenty (G20) leaders under the theme “Building Resilience—Improving Sustainability—Assuming Responsibility.” Recommendation 14 is on boosting infrastructure finance and reads:
G20 members should boost infrastructure finance by developing and promoting bankable and investment-ready infrastructure project pipelines and by enhancing the role of Multilateral Development Banks as catalysts for private sector investment.
The B20 task force on infrastructure confirms “the investment gap in infrastructure is not the result of a shortage of capital. Real long-term interest rates are low, there is ample supply of long-term finance, interest by the private sector is high, and the benefits are obvious.” However, a number of factors hold back investment in terms of financing and funding. “The main challenge is to find bankable and investment-ready projects.”
Photo: Cristiano Zingale | Flickr Creative Commons
"The nation has a huge infrastructure deficit for which we require foreign capital and expertise to supplement whatever resources we can marshal at home. In essence, increased engagement with the outside world is called for as we seek public-private partnerships in our quest for enhanced capital and expertise. This is the way of the new world for all countries in the 21st century." – HE President Muhammadu Buhari
Within the first 100 days of his administration, President Muhammadu Buhari signaled his administration’s commitment to attracting the private capital and expertise needed to address Nigeria’s infrastructure deficit. This led to a renewed engagement between the World Bank Group and Nigeria to enhance the attractiveness of the Public-Private Partnership (PPP) ecosystem in the country.
Welcome to the “10 Candid Career Questions” series, introducing you to the infrastructure and PPP professionals who do the deals, analyze the data, and strategize on the next big thing. Each of them followed a different path into infra and/or PPP practice, and this series offers an inside look at their backgrounds, motivations, and choices. Each blogger receives the same 10 questions that tell their career story candidly and without jargon. We hope you will be surprised and inspired.