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South Africa

How to accelerate the process and reduce costs for public-private partnerships? Recommended PPP contractual provisions

Mark Moseley's picture

All of the parties involved in public-private partnership (PPP) transactions – including both governments and project developers – frequently express concern over the time and expense involved in creating the legal agreements that are at the center of every PPP project. Everyone recognizes the importance of PPP contracts, since they are the documents that set out how the partnership will work – but there are constant calls for making the contractual drafting process quicker and less expensive.

In response, World Bank Group (WBG)’s PPP Group has launched the Recommended PPP Contractual Provisions Initiative, with the aim of developing recommended language on certain key provisions found in virtually every PPP contract. Under this initiative, the WBG’s PPP Group has produced the Report on Recommended PPP Contractual Provisions, 2015 Edition (the 2015 Report).  The 2015 Report was recently submitted to, and endorsed by, the G20 Infrastructure and Investment Working Group – the committee established by the G20 Group of major economies that focuses on the financing of infrastructure projects.

Energizing our green future

Mafalda Duarte's picture
The CIF is a leader in driving global investments in CSP


​As world leaders come together at the UN General Assembly to adopt new sustainable development goals, climate change activists gear up for Climate Week in New York City and the Pope brings his message to the United Nations, a shared vision of our future is coming into clear focus. 

If we are to eradicate poverty, we need to tackle climate change.  And since 2008, the $8.1 billion Climate Investment Funds (CIF) has been showing it is possible for countries to pursue sustainable development in a way that does just that.

The impact of low oil prices in Sub-Saharan Africa

Gerard Kambou's picture
Growth picked up in Sub-Saharan Africa in 2014, after moderating in 2013, but remained weaker than during the pre-crisis years. It softened around the turn of the year owing to headwinds from the plunge in the price of oil. Sub-Saharan Africa’s oil exporters, which account for nearly half of the region’s aggregate output, have been hit hard by the sharp decline in the price of oil. From June 2014 to January 2015, oil prices fell by nearly 50 percent, and have remained low despite the recent uptick.        
 

Part of the #Youthbiz movement? Share your story!

Valerie Lorena's picture

Also available in: Français | العربية
 



A boat trip from Port Elizabeth to Kingstown, in the Caribbean country of Saint Vincent and the Grenadines, is a one-hour trip that locals take several times a day. It was during one of these journeys that the boat of Kamara Jerome, a young Vincentian fisherman, ran out of gas six miles from Bequia City in what is termed locally as the "Bequia Channel." While waiting for help with strong wind gusts and the sun on his head, the idea of developing a boat that would run with wind and solar energy was born. Soon after, the idea became a prototype; a boat using green technology was on the water making 20-year-old Jerome a winner of international innovation competitions and a role model to other Caribbean youth. 
 
In Mexico, young engineer Daniel Gomez runs a multimillion bio-diesel company originally conceived as a research project for his high school chemistry class. Gomez and his partners - Guillermo Colunga, Antonio Lopez, and Mauricio Pareja - founded SOLBEN (Solutions in bio-energy in Spanish) in their early twenties. 
 
Although Daniel and Kamara have different educational backgrounds, they do share one important skill, the ability to identify a problem, develop an innovative solution, and take it to the market. In other words, being an entrepreneur, an alternative to be economically active, that seems to work and not only for a few.

How forensic intelligence helps combat illegal wildlife trade

Samuel Wasser's picture
 Diana Robinson / Creative Commons Over the past decade, illegal poaching of wildlife has quickly caught up to habitat destruction as a leading cause of wildlife loss in many countries.
 
Poaching African elephants for ivory provides a case in point. Elephant poaching has sharply increased since 2006. We may now be losing up to 50,000 elephants per year with only 450,000 elephants remaining in Africa.  In short, we are running out of time and unless we can stop the killing, we will surely lose the battle. Decreasing demand for ivory is vital over the long term, but the scale of current elephant losses makes this strategy too slow to save elephants by itself. The ecological, economic and security consequences from the loss of this keystone species will be quite severe and potentially irreversible. 

Getting to 100% renewable: dream or reality?

Oliver Knight's picture
© Abbie Trayler-Smith Panos Pictures UK Department for International Development via Creative Commons
​Attending the Future of Energy Summit last month, an annual event hosted by Bloomberg New Energy Finance, I was struck – for the second year running – by the rapid pace of cost reductions and innovation happening across the clean energy spectrum. With the news that a recent solar photovoltaics tender in Dubai obtained bids at less than US6c/kWh, to major investments in electricity storage and electric vehicles, to increased interest in demand-side management at the grid and consumer level, the message is clear: clean energy has most likely reached a crucial tipping point that will start to suck in increasing levels of investment. Some commentators also noted the opportune timing: with capital investment in upstream oil production sharply curtailed due to falling global prices, there is potentially a lot of financial capital looking for a home.
 
But perhaps one of the more interesting messages was the one coming from progressive regulators here in the U.S. The head of the California Public Utilities Commission, Michael Picker, noted that with renewable energy already supplying 40% of the state’s electricity a few days last year, the target for 50% renewables by 2030 is “not really a challenge”. Perhaps more interesting, he seemed very relaxed on reaching 100% renewables at some point in the future, on the back of strategic generation placement, transfers to neighboring states, and embedded storage. And note that we’re not talking about large hydropower here, which supplies between 6-12% of California’s electricity and is unlikely to increase.

Why are more countries embracing industrial zones? [VIDEO]

Douglas Zhihua Zeng 曾智华's picture

A shipyard crane. Source - Matthew SullivanIn the late 1950s, a group of businessmen and politicians on the outskirts of a small town in western Ireland realized their local airport was in jeopardy of losing its international flights. Knowing how important transit passengers and the airlines were to their economy, a proposal for a special industrial area near the airport was submitted and approved, marking the inception of the world’s first modern free trade zone in Shannon, Ireland. Today, the concept has gone global with an estimated 4,300 various types of zones worldwide. 

All across the world, we have seen countries exploring and seizing the potential of these industrial zones—often also called industrial parks or special economic zones. In East Asia, you can point to the experiences of China, Singapore, Malaysia, the Republic of Korea and Vietnam. In Central America, we have those of the Dominican Republic, Costa Rica, and Honduras. In the Middle East and North Africa, the United Arab Emirates and Jordan have also created zones. In Sub-Sahara Africa, Mauritius first set up an export processing zone all the way back in the 1970s, and today, countries across the region continue to experiment with modern industrial zone regimes.

The concept of the industrial zone is gaining more acceptance globally. The appeal lies in these zones’ ability to catalyze economic development and structural transformation.

If you want to go far, go together

Jana Malinska's picture

A new global network of Climate Innovation Centers will support the most innovative private-sector solutions for climate change.
 
Pop quiz: What does an organic leather wallet have in common with a cookstove for making flatbread and a pile of recycled concrete?
 
Believe it or not, each of these represents something revolutionary: a private sector-driven approach to climate change. Each of these products – yes, even concrete – is produced by an innovative clean-tech company. And as of March 26th, those businesses, and hundreds more like them, have something else in common. They’re connected through infoDev's newly established global network of Climate Innovation Centers (CICs), an innovative project that is taking the idea of green innovation beyond borders.
 
Having piloted the CIC model in seven different countries – Kenya, South Africa, the Caribbean, Ethiopia, Morocco, Ghana and Vietnam – it was time for infoDev, a global entrepreneurship program in the World Bank Group’s Trade and Competitiveness Global Practice, to follow a time-honored business practice: to scale up and take this movement global.

And so, as part of last month’s South Africa Climate Innovation Conference, we joined forces with 14 experts from the seven different countries where the CICs operate to establish the foundations of the world’s first global network devoted to supporting green growth and clean-tech innovation.



CIC staff debate and discuss the new CIC Network during the South Africa Climate Innovation Conference.

This global network of Climate Innovation Centers – business incubators for small and medium-sized enterprises (SMEs) – has been designed to help local ventures take full advantage of the fast-growing clean-technology market. The infoDev study “Building Competitive Green Industries” estimates that over the next decade $6.4 trillion will be invested in clean technologies in developing countries. An even more promising fact is that, out of this amount, about $1.6 trillion represents future business opportunities for SMEs, which are important drivers of job creation and competitiveness in the clean-tech space.

Updating the renewable energy lexicon

Oliver Knight's picture
Photo by ffennema via iStock
A just-published report by the World Bank’s Energy Sector Management Assistance Program (ESMAP) on the integration of variable renewable energy (VRE) into national grid systems shows once again that adding solar, wind and other forms of VRE does not represent the calamity for grid operators or the high costs that are frequently claimed, particularly in mainstream media. In fact, with proper planning, integrating relatively high levels of renewable energy generation into a large, interconnected grid is feasible at modest incremental cost.

This is important because with the cost of renewable energy continuing to fall, VRE is looking increasingly attractive. Just consider the recent results from South Africa’s renewable energy auctions.

Why then does the discourse around renewable energy continue to view it as a pesky annoyance at best, and a costly gamble at worst? Terms such as “intermittent” and “backup” are often used to pour cold water on the contribution that renewable energy might provide or to question the reliability of solar or wind generation. In addition to the damage they inflict on efforts to promote clean energy, they hint at a very conventional view of electricity systems that is rapidly becoming outdated.

Taking these two particular terms in turn, let us explore them in more detail.

Does political risk deter FDI from emerging markets?

Laura Gómez-Mera's picture

Investors touring a factory in Canada. Source - Province of British Columbia“Ask anyone you meet on the street whether political risk has risen in the last few years, and you’d likely get a convincing yes,” a high official from Canada’s Export Development Center recently wrote.
 
Investors have always worried about the political landscape in host markets. But it’s true. Concerns over political risk are on the rise.
 
The most recent EIU’s Global Business Barometer shows that the proportion of executives that identified political risk as one of their main concerns increased from 36 percent in 2013 to 42 percent in 2014. MIGA’s Political Risk Survey tells a similar story: 20 percent of investors identified political risk as the most important constraint on Foreign Direct Investment (FDI) in developing economies. Indeed, according to risk management firm AON, political risk is now tenth on the list of main risks facing organizations today and is likely to rise in the ranking in the next few years.
 
With FDI from emerging markets also on the rise, are the concerns of these investors any different?


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