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Beating the odds? How PPPs fare in fragile countries.

Fernanda Ruiz Nunez's picture



While discussion about Maximizing Finance for Development (MFD) is ramping up with governments and the international development community to seek innovative approaches to mobilize more private sector investment in developing countries, there is a group of countries with an additional layer of complex challenges.

It brings me no pleasure to say this, but a fair number of countries have economic and financial conditions, business environments, and rule of law that are almost always weak. Clearly, these conditions significantly increase the risks of investing in infrastructure for the private sector; consequently, the markets for public-private partnerships (PPPs) tend to be less developed.

New report on private capital for infrastructure in the poorest countries: 2017 a stellar year

Deblina Saha's picture



What do Bangladesh, Honduras, and Senegal have in common?

They all have per capita Gross Net Income below $1,165, allowing them to borrow from the World Bank’s International Development Association (IDA) that provides concessional financing to the world’s poorest countries. There are 72 other such IDA-eligible countries.

IDA countries face many complex challenges in the new global economy, including underdeveloped infrastructure, inadequate access to basic services, and a lack of affordable financing.  IDA support simply is not enough to resolve the myriad of complexities in these countries, and governments need to seek alliances with the private sector—especially when it comes to building infrastructure sustainably.

Time to focus on water management in Arab world as source of growth and stability

Anders Jagerskog's picture


In Gaza, the drinking water tastes like seawater. Years of neglect and poor management, due in large part to recurring conflicts, has led to the steady depletion of Gaza’s natural aquifer. The empty aquifer has been invaded by seawater and, alarming for public health, untreated sewage. A series of droughts that struck Syria from 2006 onwards destroyed the livelihoods of millions of Syrians who relied on agriculture.  The United Nations (UN) estimated that between 2008 and 2011, the drought affected 1.3 million people, with 800 000 people “severely affected.” People were forced from their land, poverty levels rose, and part of the population was plunged into deep food insecurity.

Three ways governments can create the conditions for successful PPPs

Lincoln Flor's picture
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A healthy Public-Private Partnership (PPP) has several defining features: strong competition, bankability with low financial costs, lower risk of renegotiations, secure value for money, and efficiency gains.

What does it take for countries to develop PPPs that can fit this description? Why is it that some countries such as India, Colombia, Turkey, and Egypt have been able to develop strong and successful PPP programs while others have not been able to award any projects under special-purpose PPP legislations? 

Our experience with infrastructure PPPs across the globe suggests that three institutional pillars are needed to increase the probability of PPP success.

A Catalyst for Green Financing in Indonesia

Philippe H. Le Houérou's picture



It is an unfortunate but fact of life that Indonesia often deals with the impacts of natural disasters. It was sadly evident again this week when I arrived in Jakarta to the unfolding disaster caused by the earthquake in Lombok, West Nusa Tenggara. My condolences go out to the families and friends of those who lost their lives.

While scientists are reluctant to say a specific natural disaster is caused by climate change, they say a changing climate is resulting in more extreme events around the world. That’s why at International Finance Corporation (IFC), the largest global organization working with the private sector in emerging markets, finding new avenues for climate financing is a key priority.

Green bonds offer a pathway. The world is witnessing a rapid growth in green bonds, dramatically increasing the flow of capital to green projects and bringing new financiers into the climate smart investment space.

Cooking helped us survive… modern energy cooking services can make us thrive

Yabei zhang's picture
About 30 years ago, I lived in a village in China's Xinjiang province where I remember having to collect firewood for cooking and heating as part of my chores. In fact, as part of summer homework, we also needed to turn in a big bundle of firewood when the school started in the fall, which would be used to heat the classroom, together with coal.

Cooking with firewood was not only a tough job because of all the smoke but also required skills and experience. If the fire was not well controlled, the rice could be easily burned. Before I was old enough to take on this job, our family moved to a city apartment with access to district heating and we also started to use liquefied petroleum gas (LPG) for cooking. Since then, our daily life has been transformed.
 
However, not everyone is as lucky as me. 

How can Indonesia achieve a more sustainable transport system?

Tomás Herrero Diez's picture
Photo: UN Women/Flickr
Indonesia, a vast archipelago of more than 17,500 islands, is the fourth most populous country in the world, with 261 million inhabitants, and the largest economy in Southeast Asia, with a nominal Gross Domestic Product of $933 billion.

Central government spending on transport increased by threefold between 2010-2016. This has enabled the country to extend its transport network capacity and improve access to some of the most remote areas across the archipelago.

The country has a road network of about 538,000 km, of which about 47,000 km are national roads, and 1,000 km are expressways. Heavy congestion and low traffic speeds translate into excessively long journey times. In fact, traveling a mere 100 km can take 2.5 to 4 hours. The country relies heavily on waterborne transport and has about 1,500 ports, with most facilities approaching their capacity limits, especially in Eastern Indonesia. Connectivity between ports and land infrastructure is limited or non-existent. The rail network is limited (6,500 km across the islands of Java and Sumatra) and poorly maintained. The country’s 39 international and 191 domestic airports mainly provide passenger services, and many are also reaching their capacity limits.

Electrocracy in India: power of, by, and for the people

Amit Jain's picture
India Solar
To boost India’s solar rooftop program, the World Bank has partnered with the Government of India to provide $648 million to place solar panels on rooftops across the country.

Solar energy is not just for the elite and wealthy. Today, with growing numbers of people taking power generation into their own hands, solar energy has become the world’s most democratic source of power - of the people, by the people, and for the people. However, the pathway to this goal requires a fundamental paradigm shift in the power sector – one in which more and more people take “power” generation into their own hands.
 
In the words of environmentalist and author Ross Gelbspan, “A common global project to rewire the world with clean energy could be the first step on a path to global peace and global democracy -- even in today's deeply troubled world.”
 
In Germany, solar rooftops have already set off a transformation. Home to more than 1.7 million citizen-owned solar power systems, Germany now accounts for almost one-fourth of the world's PV capacity. Armed with solar rooftops and smart battery storage, German households have turned into energy producers, are paying lower utility bills, and are fast approaching energy independence.  
 
In California too, solar rooftops have taken center stage. The state is the first in the U.S. to require solar panels on almost all new homes. And as solar rooftop installations rise, domestic storage systems are simultaneously being developed to keep pace. Tesla's Powerwall, for example, enables users to store solar power generated during the day for use at night when the sun goes down.
 
As the world’s third-largest producer of conventional energy, India too is now rapidly expanding its capacity to generate solar power. The country has set itself an ambitious target of generating 100 GW of solar power by 2022. Today, solar power has emerged as the cheapest source of energy in India, at prices that are a fraction of grid power. In fact, India’s 100 GW solar target, of which 40 GW is to come from rooftop solar, will play a key role in providing 24 X 7 sustainable, affordable, and reliable electricity to 300 million people. Currently, however, only some 2 GW of this 40 GW target has been installed.
 
To boost India’s solar rooftop program, the World Bank has partnered with the Government of India to provide $648 million to place solar panels on rooftops across the country. The program has financed 600 MW in rooftop solar installations so far, of which 80 MW has already been installed.

Indonesia pilot attracts entrepreneurs’ appetite to bring clean cooking technologies to households

Yabei zhang's picture



Bapak Kris manages a pellet production factory, located just outside Boyolali City in Central Java. Since its founding, he has started considering the domestic market- despite the fact that the produced pellets have mainly been for export- as the global markets have begun to cool down. When Bapak Kris learned that the Indonesia Clean Stove Initiative (CSI) had launched its Results-Based Financing (RBF) pilot in the Province, he registered and participated in the pilot. 

He combined his knowledge of the local pellet market with the pilot program incentives to expand his distribution network and test new pellet-based clean stoves. With each stove sold, the company provided the consumer 1 kg of wood pellets free of charge. With the experience of participating in the RBF pilot, Pak Kris sees the potential of the clean cooking market. He plans to continue selling clean stoves and hopes to set up his own pellet factory. 

#IndiaWeWant Photo Contest: Shortlisted Entries

Roli Mahajan's picture

The World Bank in India ran the #IndiaWeWant photo competition through our Facebook and Twitter channels, where we invited participants to share photographs capturing the key development priority for India. The #IndiaWeWant photo competition was open for a month and we have received many compelling entries. 

Now it is time for us to choose our winners.

We asked a jury of three members comprising professional and development photographers -- Michael Foley, Anirban Dutta, Anupam Joshi-- to come together and do the honours.

Here are the #IndiaWeWant entries that have made it to the longlist. They will be deliberating over these soon and selecting the WINNER as well as the 9 others, as stated in the rules.

Let us know what you think in the comments section below and if one of your entries has been selected then please do send us an email ([email protected]) with the actual photograph and your details (Name, Phone Number).
 

Banking on women’s empowerment for a sustainable and stronger India 
The global efforts for achieving the Sustainable Development Goals could be accelerated by synergising women's empowerment with environmental conservation. 
Since past 32 years, Barli Development Institute for Rural Women (BDIRW) has been empowering rural and tribal women through organising free 6-monthly residential training program covering literacy, organic-farming, solar-cooking, health and tailoring&cutting. More than 8200 women have been empowered, who are changing the sustainable development horizons of their families and tribal communities (www.barli.org#IndiaWeWant 
In Picture: The women-trainees from Alirajpur (Dhauli, Rita, Angita, Karmi) planting trees in BDIRW campus (Indore, India) 
Photo credit: Yogesh Jadhav
 
For India, developing priority should be the education of girls in rural areas. They enrolled in school in beginning but they are not able to make it till the end, either they are forced to marry at the age of 10 or 13. In future, they are illiterate mothers who cannot read and write properly and also they become a victim of domestic violence as they are unaware about their rights. #IndiaWeWant
Photo Credit: Neha Rawat
To me, development is more than improvement in nation's GDP. It must be conceived as a multidimensional process, involving changes in the entire spectrum through which human capabilities are expanded, like education, healthcare, social participation or the freedom to make choices. The primary objective of development is to benefit people and improve the quality of life, which can only be achieved if all marginalised and excluded groups are equal stakeholders in the process alongwith active involvement in the planning, execution and monitoring of development programs.
The couple below selling lights which are battery operated but thankfully their smiles are not.#IndiaWeWant
Photo Credit: Maneka Naren Yadav‎

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