Syndicate content

PPPIRC

How to foster a more inclusive environment for SMEs in PPPs?

Jenny Chao's picture


Photo: Lufa Farms | Flickr Creative Commons

Have you ever walked around a megastore, lost in the aisles of choices, only to go home without the one item you set out for? Conversely, have you ever wandered into a much smaller “mom and pop” shop and found everything you need?

Many reasons compel us to support small and medium businesses: tailored knowledge, personalized service, and the satisfaction of contributing directly to the local economy. 

The benefits of supporting such small and medium-sized enterprises, or SMEs, carry over into Public-Private Partnerships (PPPs). But often, these enterprises find themselves “crowded out” by the bigger players in infrastructure. SMEs in developing countries may find it particularly costly and time consuming to comply with complex pre-qualification criteria or bidding documents, leaving them unable to compete with market leaders. This is unfortunate, because SMEs participating in PPPs can build local capacity and expertise, decrease costs, facilitate logistics, encourage increased competition, and create broader opportunities for economic development.

These vital and homegrown engines of growth are the focus of a new section on the PPP in Infrastructure Resource Center (PPPIRC) that links the policies, laws, and contractual clauses that can foster a more inclusive approach to SMEs in PPPs.

Managing PPP risks with a new guide on guarantees

Victoria Rigby Delmon's picture



Just two years ago, Ghana was experiencing unstable commodity prices and a deteriorating macroeconomic situation. Yet, through a unique combination of World Bank guarantees nearly $8 billion in private investment was mobilized for the Sankofa Gas Project—the biggest foreign direct investment in Ghana’s history. The transformational project helped address serious energy shortages and put the country on a path to economic growth.
 
This is just one example illustrating how risk mitigation products play out in practice to encourage private sector investment and improve people’s lives.

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