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4 concrete ways to move the Philippines’ public-private partnership programs forward

Jesse Ang's picture
Light Rail Transit in Manila, the Philippines
Credit: Ingmar Zahorsky/Flickr

The Philippines has one of the best performing Public-Private Partnership (PPP) programs in Asia. According to the Philippines PPP Center, much more will be done to further improve the country's ambitious PPP program.

Infrastructure building in most countries is driven by the government. China has been the most remarkable infrastructure builder in the world over the last 30 years, and this progress has been driven almost entirely by the government. In the case of the Philippines, government is also in the driver’s seat when it comes to infrastructure development, bringing in the private sector for expertise, capacity, and relevant experience. In most PPPs, project efficiencies increase and sustainability is strengthened with private participation. Though PPPs are not a panacea, and the transactions themselves are complex, the Philippines has chosen to incorporate private sector expertise and resources in various ways. The challenge is to balance public objectives with private need for a return on investment. There has to be appropriate sharing of risks between government and the private sector.

How to more proactively disclose information in public-private partnership projects? Your input needed

Robert Hunja's picture

For too long, there has been a dearth of literature and guidance on policy and practice in public-private partnership (PPP) disclosure and a wide gap in understanding the mechanics of disclosure by practitioners within governments and the private sector. The just-released Framework for Disclosure in Public-Private Partnership Projects, a systematic structure for proactively disclosing information, fills this gap. Two additional documents, Jurisdictional Studies and Good Practice Cases, provide relevant background and resources, complementing the goals of the Framework.
Your input and PPP experience (locally, regionally and globally) are imperative to help us get this framework right. While the documents have been drafted, we are eager to incorporate feedback that will make them better. Please take a few minutes to read the documents and provide us with your input on this page to further refine this work.

Record investment in transport boosts overall private participation in infrastructure in 2014

Henry Kasper's picture

Imagine record commitments in transport that are 26% higher than the next best year since the inception of the Private Participation in Infrastructure (PPI) Database in 1990. That’s exactly what took place in 2014—massive private participation in transport that culminated in the fourth highest level of global investment (transport, energy, and water) ever recorded. Indeed, the PPI Database’s 2014 Global Update released in June, 2015, shows that total investment in transport hit a record high of US$36.5 billion, driven by a handful of outsized deals in
Latin America and, more specifically, Brazil—including a mega airport project totaling US$10 billion. Meanwhile, energy fell 19 percent year-over-year due to fewer commitments in five out of six regions, while water grew 14 percent, driven by key deals in Brazil, Mexico, and Peru. In a separate report, Telecom showed modest year-over-year declines, extending a trend of fewer projects and lower investment over the past five years.  

From Africa to Asia: Facilitating private investment in infrastructure

François Bergere's picture

Kigali, the capital of Rwanda, is home to more than one million people – and like many urban hubs around the developing world, the city is bracing for a population explosion in the coming decades. More people bring greater pressure on already insufficient and stressed infrastructure, especially water services. But the Government of Rwanda has already announced commitments to increase the local water supply, partnering with the private sector to ensure 100 percent coverage. In March 2015 the government signed a 27-year PPP concession with a private company responsible for a water treatment plant, and support from the Public-Private Infrastructure Advisory Facility (PPIAF) is one of the reasons why.
PPIAF, in partnership with IFC, has been providing institutional support to Rwanda’s Energy, Water, and Sanitation Authority (EWSA) since 2012. The technical support PPIAF and its partners have been providing helped government officials develop a more comprehensive understanding of EWSA’s distribution network and operational performance. Through training and experience-sharing, PPIAF supported capacity building among government institutions and officials, enabling them to work successfully with the private sector.
This is just one of the many examples of positive outcomes that PPIAF’s support has made possible in the past year. PPIAF’s just-released annual report details many others, and it also outlines the significant strategic shifts, staffing changes (including the reopening of our West African office), and programmatic initiatives that took root last year.

5 trends in public-private partnerships in water supply and sanitation

Victoria Rigby Delmon's picture

A lot has been happening in Public-Private Partnerships (PPPs) in the water supply and sanitation sector over the last few years, contrary to some misperceptions. Today’s market is radically different from the 1990s (dominated by the large concession model and appetite of private investors to finance projects) or the 2000s (contract terminations and nervousness about benefits that PPP could bring in the water supply and sanitation sector).

Developing countries, facing the challenges of sustainability and financial viability due to the inescapable realities of poor water supply and sanitation services and constrained budgets, are looking at PPPs as an option worth considering to help performance or to develop new sources.  Applying lessons learned from the past, with a better understanding of what PPPs in water can and cannot bring, water PPPs are being used increasingly by public utilities in a more focused way, to manage a specific subset of activities or challenges, such as increasing energy efficiency and water availability through non-revenue water management, or development of a new water source.  The focus is on performance based contracting, with payments against outputs. 

From trash to treasure: Public-Private Partnerships can help with waste management

Jeff Delmon's picture
A heap of trash on a hillside in Kathmandu Valley, Nepal

Our modern world, with its convenience and consumption, creates a whole lot of trash, which in turn suffocates cities and undermines economies. Managing trash is a municipal nightmare. But it should be a banker’s dream, right? Demand will only grow, and the problem needs a solution—without it the entire economy suffers.

But if there’s a simple solution, it has eluded us all. The management of solid waste would seem to benefit from the structuring, efficiencies, financing, and latest technology that can come with public-private partnerships (PPPs). Let’s examine the options at our disposal.

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.

How can we close the infrastructure gap in Asia? Ideas from the Asia-Singapore Infrastructure Roundtable

Cledan Mandri-Perrott's picture

What does one trillion dollars look like? In the most literal sense, one trillion – that’s one million multiplied by one million -- is a “1” followed by 12 zeroes.  For participants in this week’s Asia-Singapore Infrastructure Roundtable, $1 trillion per year looks like how much infrastructure investment Asia needs to maintain its rapid urbanization.

To advise governments on how to get from here to there, Laurence Carter, Senior Director of the World Bank Group’s Public Private Partnerships Group, and other leaders from around the world shared their ideas during high-level strategy sessions.

Voice from the field: how can we help the Caribbean fulfill the promise of PPPs?

Brian Samuel's picture
From Sept. 29 to Oct. 1, 2015, our first “PPP Boot Camp” was held in Barbados. This is the first of the boot camp-style workshops we are delivering to Caribbean government officials to help them increase technical capacity in public-private partnerships. The boot camp series aims to offer the depth and breadth that’s been missing from the PPP market in the Caribbean.

The sunny side of PPPs: Rooftop solar, public-private partnerships, and the promise of a brighter future

John Kjorstad's picture
In 1899 American Ada Blenkhorn—inspired by a disabled nephew—wrote the popular folk song Keep On the Sunny Side. As legend would have it, Blenkhorn’s nephew always wanted his wheelchair pushed down the “sunny side” of the street. Not for the first time, sunshine was linked to optimism and the lyric stuck with working-class audiences.